A new report by the DAWN Commission has identified Southwest Nigeria as the epicentre of Africa’s largest and most diversified counterfeit goods economy, warning that the crisis is costing lives, damaging industries, and discouraging investment.
The report, titled: “Southwest Nigeria Under Siege: The Counterfeit Shadow Economy”, said fake drugs, adulterated beverages, toxic cosmetics, sub-standard auto parts, and counterfeit electronics are deeply embedded in major commercial markets across the region.
It estimated that counterfeit goods account for about 40% of products in Nigeria, while the shadow economy represents 57.4% of GDP, valued at roughly ₦1.489 trillion.
The report cited recent enforcement operations by National Agency for Food and Drug Administration and Control (NAFDAC), including the seizure of over 10 million fake drug doses worth ₦3 billion at the Lagos Trade Fair Complex in February 2026, alongside another ₦3 billion haul of banned cosmetics containing mercury and other harmful substances.
According to the report, counterfeit pharmaceuticals remain the deadliest aspect of the crisis, with fake and substandard drugs linked to thousands of deaths annually in Nigeria and across sub-Saharan Africa.
The Commission also warned that 95% of imported auto spare parts fail minimum standards, while fake electrical products are contributing to deadly fires in homes and businesses.
The report criticised Nigeria’s anti-counterfeiting laws as weak and ineffective, stressing that the maximum ₦500,000 fine for counterfeit-related offences is “not a deterrent; it is a licence fee” for operations worth billions of Naira.
