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Counterfeit empire: Lagos electronics market where fake products sustain luxury

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Beneath the bustling chaos of Alaba International Market lies a hidden economy built on counterfeit goods. Refurbished televisions masquerade as brand-new, logos deceive the eye, and receipts vanish without a trace. For traders, it is a lifeline, a way to support families and even sustain luxury lifestyles; for unsuspecting buyers, it often means disappointment and significant financial loss. In this investigation, CHIJIOKE IREMEKA not only exposes the underdogs behind this imitation business but also draws parallels with similar trade hubs worldwide, offering potential solutions to curb this thriving culture

“I  didn’t know a television could be refurbished and painted the way a vehicle could be panel-beaten and sprayed,” said 31-year-old Dumebi Asika, recalling how he was shortchanged at Alaba International Market, Lagos, while trying to buy a 65-inch smart TV for his home.

The newlywed had recently rented a two-bedroom flat in Okota, Amuwo-Odofin, in the heart of Ojo Local Government Area, Lagos State, for N1.8m. After furnishing his living room with sofas, he set out to buy a fashionable smart television as a gift for his wife.

However, with the prices of new televisions rising across brands, the 65-inch TV he wanted was beyond his budget.

A new model was going for N620,000, while a tokunbo (used) television sold for N242,000. Reluctantly, he opted for a used set, but that decision would later lead to disappointment.

“Everything went wrong when I settled for tokunbo instead of my original choice. I went for a fairly used TV, but I was given a refurbished one instead,” he said.

How it began

What the smooth-talking seller, known only as Joe, actually handed Asika was an old TV set cleverly passed off as tokunbo.

“The TV worked perfectly for a couple of weeks, but after a month, it started overheating and randomly shutting down. Within a week, lines appeared across the screen. I was shocked,” he recalled.

Attempts to reach Joe through the contact on the receipt proved futile. Frustrated, Asika took the television to a local electrician, who delivered the unwelcome news: the set was not a genuine Samsung.

While the casing bore Samsung branding, the internal components: panel, motherboard, and power unit, were cheap, mismatched parts from unknown manufacturers.

Essentially, it was an assembled TV masquerading as a branded product.

“It was a screen problem, but repairing it would cost almost as much as the TV itself, with no guarantee it would last. I was advised to return it to the seller,” Asika explained.

Finding the seller, Joe, was complicated by ongoing demolition and rebuilding projects in the market, which had displaced many traders. When they finally met, Joe argued the television had been in perfect condition when it was sold, claiming Asika damaged it and should bear the responsibility.

“It was a heated argument. People gathered to intervene, but Joe insisted he had done nothing wrong, saying he sold the product two months earlier and couldn’t accommodate returns beyond that period.

“Eventually, I had to drop the faulty set, pay an additional N49,500, and accept a 55-inch LG TV instead of the 65-inch I wanted. I wish I had gone for my initial choice, a brand-new TV. But it was an experience that changed my perception of tokunbo items,” Asika lamented.

‘I paid for a 55-inch TV but 45-inch was given’

In a similar case, 48-year-old civil servant, Sunday Chinwike, fell victim to brand counterfeiters at Alaba Market. After saving for months to upgrade his living room TV, he was led to believe he could get a high-quality 55-inch LG smart television at a lower price.

Guided by local hustlers known as Osoafia boys, who posed as market insiders, Chinwike was led into a shop lined with neatly stacked LG-branded television cartons.

The shop assistants, later discovered to be impostors, showcased the television’s features, displayed an LG-branded remote control, and produced a seemingly convincing warranty card.

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“The price was N320,000, lower than elsewhere, but not suspiciously cheap. I trusted them. I didn’t understand the meaning of being careful until I was shortchanged,” Chinwike recalled.

Trader packing a counterfeited LG television into a carton after manually stamping LG logo on it

He said he was drawn in by claims of a promotional price and LG’s excess stock.

“After a brief test in the shop, the television came on, showed bright colours and looked genuine. Unfortunately, I did not pay attention to the software or the size,” the man said.

It was only after returning home that his son, Marcel, began navigating the settings and noticed anomalies.

“Some of the apps and software in the menu weren’t customised. After a series of checks, we discovered it wasn’t an LG product at all; it was a clone. We also realised it wasn’t as large as my neighbour’s television. Yet, surprisingly, most features worked, including Bluetooth and Wi-Fi,” Chinwike explained.

Shocked by the discovery, father and son returned to the shop seeking a replacement, only to encounter the real shop owner, who delivered an unexpected revelation.

“By the time we arrived, the seller had disappeared. The shop owner examined the television and said it was not his product. He said he did not even stock 55-inch LG televisions. The receipt I had did not come from his store. Apparently, Osoafia hustlers had sourced the set from another vendor and sold it as genuine,” Chinwike said.

The owner advised him to exercise more caution, clarifying that the product itself was not faulty, just that it was simply not authentic.

“The original model sells for about N750,000 and is roughly 10 inches larger than the one I bought. I had to return home with the fake television, wasting my transport fare. Still, it wasn’t entirely useless, and I learnt my lesson,” he added.

Chinwike’s experience, like that of many others, highlights a fractured system in which counterfeit global brands sustain livelihoods while ordinary Nigerians bear the brunt.

The menace of counterfeiting

Across Alaba International Market, counterfeit products, including telephones, cables, electronics, and televisions, are sold daily.

LG, Samsung, and Hisense are among the global brands most commonly imitated. Investigations by Sunday PUNCH revealed that traders import generic or substandard TV panels, assemble them locally, and brand them with popular logos. To the untrained eye, the products appear authentic, with carefully fabricated cartons, substandard remote controls, start-up screens, and serial numbers.

Experts warn that until regulatory agencies, brand owners, and policymakers enforce stricter measures, Alaba’s counterfeit economy will continue to thrive, ensnaring unsuspecting buyers behind familiar logos.

Regulatory agencies, including the Standards Organisation of Nigeria, have occasionally carried out raids in the market, seizing counterfeit goods and shutting down shops engaged in illegal activities.

However, enforcement has remained inconsistent. The market’s vast size, dense population, and political sensitivity mean that business often resumes almost immediately after raids. Brand owners have also faced criticism for weak local oversight and limited consumer education.

Millions lost to counterfeiting

The World Bank estimates that Nigeria loses around 15 per cent of potential GDP growth annually due to counterfeit products and related illegal trade.

Experts note that the Information and Communications Technology and electronics sectors are particularly vulnerable, with counterfeit devices contributing to poor service quality and financial losses for both consumers and original manufacturers.

Even international watchdogs have taken notice. In 2014, the Trademark Working Group, an informal collaboration of US companies facing challenges protecting their trademarks abroad, listed Alaba as one of Nigeria’s most notorious markets for counterfeit goods.

In 2018, SON revealed that Nigeria lost N15bn annually to counterfeiters.

A former SON director, John Achukwu, made this known at a stakeholders’ workshop on “Reduction of Substandard Products in Nigeria” for the South-East zone.

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Today, counterfeit goods are noted to make up 40 per cent of products in the Nigerian market, causing annual economic losses exceeding $20bn.

Many of these products, particularly electronics, are imported, and according to SON, the body had previously destroyed counterfeit items worth up to N500m in single operations.

Recent accounts from buyers highlight the persistence and severity of these scams.

A banker, Wilson Ebo, for instance, said he went to Alaba to buy a second-hand Samsung home theatre, only to realise it was counterfeit.

“After testing the sets and negotiating a price of N25,000, I paid and signed the receipt without scrutiny. Later, a shop assistant told me the DVD engine worked only on a generator and suggested a swap. When I asked for a refund, the seller refused. An elderly man posing as a mediator later revealed that the receipt excluded the subwoofer and speakers. It became clear that the mediator was part of the scam. I had no choice but to pay an extra N6,000, and even then, the so-called Samsung was fake, as the logo was simply glued on it,” he said.

Fake products, cheap alternatives

Sunday PUNCH’s investigation revealed a system sustained by economic hardship and weak regulation, even as some traders defended the sale of low-quality goods as affordable alternatives for the masses.

“The goods you call fake are actually cheap alternatives for the masses. If we sold only originals, what would the poor do? How many people can afford them? Customers want affordable products because of the country’s economic situation. Everyone is just trying to survive, and you cannot blame anyone for that. Those who cannot afford the original will go for an alternative and still enjoy their lives,” argued a trader, Joshua Chidozie.

He acknowledged that alternatives are not necessarily bad but warned that some hustlers do not provide buyers with true, full details.

Osoafia boys at Alaba

“If you are not careful, they will sell that same alternative to you as the original. In the market, there are always two products: original and copy. You can get the one you want, but if you don’t know and seek a cheaper product, they will sell you a copy in place of the original,” he added.

In contrast, an electronics engineer, Kenneth Ikwo, warned that the normalisation of counterfeiting has created a dangerous marketplace where deception has become routine. He noted that while consumers are often blamed for being ‘careless,’ the sophistication of counterfeit products makes it nearly impossible for the average buyer to identify a fake.

“You can’t be more careful than the criminals. Some counterfeit TVs pass basic on-the-spot tests but fail weeks or months later, long after the seller has disappeared. Beyond financial loss, the risks are serious. Substandard electronics can cause electrical faults, fires, and health hazards. Many fake TVs lack proper insulation and voltage regulation, which can burn sockets and damage entire apartments,” Ikwo warned.

He alleged that traders often source low-quality television sets from foreign manufacturers, particularly in China, without brand logos. Once in Nigeria, he noted, local printing shops produce counterfeit brand cartons to package the products as originals—a practice recently highlighted in a viral video circulating online.

Fake LG logo syndicate exposed

Recently, a suspected syndicate was exposed inside Alaba International Market for printing LG logos on cartons for 45-inch and 55-inch televisions. A viral video obtained by Sunday PUNCH showed the suspects stamping LG logos on cartons as they prepared the televisions for sale to unsuspecting customers.

Stack_of fake television inside of fake LG cartorns at Alaba Internationa Market, Ojo. Lagos

A voiceover in the video said, “Yesterday, I was in Alaba… and I came across this guy printing the LG logo on these new TVs.”

According to the narrator, over 3,000 cartons of counterfeit televisions were discovered inside the shop, raising fresh concerns about the scale of fake electronics flooding Lagos.

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Prospective buyers were urged to exercise caution, as branded packaging alone does not guarantee authenticity.

Why the menace persists

An electronics dealer in Festac town, Osita Udegbunam,  attributed the persistence of counterfeiting to poverty and the struggle for survival.

“As a first-time visitor to the market, you’ll encounter Osofia hustlers who direct you to shops or claim they have exactly what you are looking for. These are mostly unemployed young men with no capital to start trading, but with extensive knowledge of the market.

“They guide buyers to sellers, earning small tokens from both parties to survive. Even married men rely on these crumbs to support their families. This system exists in major markets – electronics, foodstuffs, and more,” he said.

Udegbunam noted that similar practices are common in Alaba Rago, the livestock market, where local boys guide buyers, as well as in cattle markets.

“However, due to hunger and desperation, some have turned to crime as a faster way to survive. No authority can solve this without addressing the root causes. Create jobs, reduce hunger, and make life meaningful for the masses, and these problems will diminish. Even graduates are involved. The hungrier the population, the more people drift into scams and crime,” Udegbunam added.

Supporting this, a trader in Oshodi, Jonathan Isibor, explained that while some hustlers are genuinely trying to make a living, others deliberately prey on unsuspecting buyers.

“The bad ones usually exploit greed. They may offer an LG 42-inch LED TV for N100,000 or quote other unrealistic prices. If you fall for it, you return the next day claiming you were scammed at Alaba. These scammers operate in organised rings, and once you fall into one, escaping their trap is difficult. The best protection is to remain alert and wary of their tricks,” he advised.

Isibor added that these hustlers cut across ethnic lines, Yoruba, Igbo, and Hausa, but are united by a single motive: defrauding unsuspecting buyers.

“Hunger knows no tribe, and crime has no colour. A Yoruba hustler may discourage you from buying from an Igbo trader, and vice versa, but they often belong to the same ring. Their sole aim is to defraud you,” he explained.

The trader also noted that task forces oversee different sections of the market. “Once you identify where you made a transaction, report it immediately to the task force, and it will be addressed. Alaba has many genuine, hardworking traders, but in a market of this size, bad actors will always exist. Buyers must stay observant, avoid shady deals, and carefully read receipts before signing or making payment,” he added.

 ‘We are hustlers, not criminals’

One of the Osoafia hustlers, Peter Balogun, rejected the criminal label often attached to them, insisting that most are simply trying to survive.

“We are not criminals,” he insisted. “We hustle to feed our homes. What we do is guide customers to traders who sell the products they are looking for. When a customer buys, we get a small commission from the trader or a token from the customer.”

Balogun acknowledged that some individuals exploit the system to commit scams, but emphasised that they do not represent the majority. “Bad people are spoiling the work for us, but many of us are genuine. Unemployment and hardship have pushed many young men into Osoafia hustling. There are no jobs. This market is how we survive,” he added.

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NNPC eyes $60bn investment, targets 600tcf in new master plan

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The Nigerian National Petroleum Company Limited (NNPC) has unveiled plans to grow Nigeria’s gas reserves from 210 trillion cubic feet (tcf) to 600 tcf, while attracting approximately $60 billion in investments into the sector.

According to NNPC’s X handle on Friday, the disclosure came from NNPC’s Executive Vice President for Gas, Power & New Energy, Olalekan Ogunleye, during the CERAWeek energy conference by S&P Global in Houston. Speaking on a panel titled “The New Gas Order: Market Depth and the Reshaping of Global Trade”, Ogunleye emphasized Nigeria’s strategic position in the global gas market.

“With the ongoing Strait of Hormuz shipping constraints stemming from geopolitical tensions in the Middle East, Nigeria is uniquely positioned to become a major supplier of LNG and gas-based industries,” Ogunleye said. “Our abundant gas resources, combined with our proximity to key markets, give Nigeria a competitive advantage in the global energy landscape.”

Ogunleye outlined the key deliverables of the NNPC Gas Master Plan, noting, “We aim to move Nigeria’s validated gas reserves from 210.5 tcf to an estimated potential of 600 tcf.”

“Our goal is to increase gas production volumes from 7.4 billion standard cubic feet per day (bscfd) to 12 bscfd by 2030, exceeding the Federal Government’s mandate for 62% growth.”

“We are committed to attracting $60 billion in additional investments into the gas sector through commercial incentives and strategic partnerships,” Ogunleye averred.

He stressed that the Gas Master Plan is grounded in disciplined execution rather than ambition alone. “This plan is neither aspirational nor theoretical.

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“Its success depends on applying execution discipline to our annual work plans to ensure we meet—and surpass—our gas development growth targets,” the executive vice president for AGS, power & new energy said.

With these strategic moves, Nigeria is positioning itself to play a more significant role in global LNG supply and the gas-based industrial sector, leveraging both its natural resources and geographic advantage.

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Blackouts cost Nigeria N40tn yearly – Report

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Nigeria loses about N40tn annually to poor electricity supply, the Nigerian Independent System Operator, an agency of the Federal Government, has said, warning that unreliable power remains one of the biggest constraints to economic growth, industrial productivity, and job creation in the country.

The system operator noted that persistent outages continue to impose high costs on businesses and households, many of which are forced to generate their own electricity.

According to the organisation, reliable electricity remains one of Nigeria’s most important economic priorities, stressing that power outages cost Nigeria up to $29bn annually.

Converted at the prevailing exchange rate of N1,385 to a dollar, this translates to roughly N40.1tn in yearly losses to the economy. The operator added that the burden extends across all sectors, stating that businesses, manufacturers, and households spend billions each year generating their own electricity.

“Reliable electricity is one of Nigeria’s most important economic priorities. Power outages cost Nigeria an estimated $29bn annually. Businesses, manufacturers, and households spend billions each year generating their own electricity,” the system operator said in its latest industry report.

It emphasised that a stable power supply would unlock economic opportunities, noting that “a stable national grid unlocks economic growth, industrial productivity, and job creation”.

Despite the huge demand, the organisation said Nigeria generates significantly more electricity than is ultimately delivered to consumers due to structural bottlenecks across the value chain.

It disclosed that Nigeria generates approximately 45,000 to 50,000 megawatts of electricity daily, but the grid only takes 5,000 megawatts, which is about 10 per cent of total generation. “Nigeria generates approximately 45-50 GW of electricity daily, far more electricity than the grid can deliver. Yet only about 5GW currently reaches the national grid,” it said.

The operator attributed the shortfall to multiple challenges, saying, “The gap reflects constraints across the value chain, including transmission capacity limitations, distribution network constraints, and gas supply disruption.”

To address these issues, the system operator outlined its responsibilities, noting that NISO’s mandate is to strengthen grid reliability and accountability. It added that its duties include enforcing the national grid code, strengthening system dispatch and reliability, improving sector transparency and accountability, and supporting coordination across the electricity value chain.

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The organisation stressed the urgency of reforms, stating that a stable national grid is essential for Nigeria’s economic future. It also quoted its board chairman, Adesegun Akin-Olugbade, as saying, “Electricity is, after all, a 19th-century technology, and we do not need rocket scientists to fix these problems.”

Making recommendations, the operator said the way forward is to digitalise the grid, strengthen infrastructure, diversify the energy mix, and enforce grid code compliance.

On the feats recorded in the past year of NISO’s creation, the organisation pointed to ongoing improvements in transmission infrastructure, noting that 82 new power transformers were commissioned between 2024 and 2025. It added that 8,500+ MVA additional transformer capacity had been added, while over 30 transmission projects were completed.

According to the operator, the national grid wheeling capacity now stands at approximately 8,700MW. The organisation further disclosed that the grid had recorded operational milestones in recent years, including a 5,802MW all-time peak generation in March 2025, a 129,370MWh record daily energy delivery, and 421 consecutive days without grid collapse during 2022–2023.

“These milestones demonstrate the potential of the system when operating conditions align,” it said.

The agency also highlighted progress in grid digitalisation through the SCADA/EMS programme, stating that there had been a “$1.16bn investment in grid digitalisation,” with over 3,000 kilometres of fibre optic network deployed and more than 100 substations equipped with SCADA technology, adding that the project had reached approximately 69 per cent completion.

It emphasised that improved monitoring would strengthen operations, noting that real-time monitoring enables faster decision-making and improved grid stability. The operator reiterated that bridging the gap between generation and delivery remains critical, stressing that Nigeria generates far more electricity than consumers receive, while transmission, distribution, and gas supply challenges continue to limit the amount of power that reaches the grid.

As Nigerians continue to grapple with widespread power outages blamed on gas constraints since the beginning of the year, the Transmission Company of Nigeria blamed multiple factors for low allocation, including generation companies’ output and requests by the DisCos. TCN said electricity load allocation to distribution companies is determined mainly by their daily requests.

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So far, power generation has fallen far below 4,000MW, limiting the capacity of DisCos to supply electricity to their customers. Our correspondent reports that data from TCN’s distribution load profile as of 25 March 2026 showed that a paltry 2,908 megawatts was allocated to the 11 distribution companies.

While Nigerians experience persistent outages, several distribution companies keep apologising to customers and attributing the situation to reduced generation caused by gas constraints. The Minister of Power, Adebayo Adelabu, also apologised on Tuesday, acknowledging the disruptions and assuring Nigerians that efforts were ongoing to stabilise supply in a few weeks.

The minister attributed current blackouts to gas supply constraints affecting 75 per cent of Nigeria’s gas-fired plants. “Even the best turbines cannot operate without raw materials. Global gas shortages due to the Middle East crisis, local supply obligations, outstanding payments to gas suppliers, and pipeline repairs have all contributed to the recent decline in generation,” he said.

According to him, only two out of 32 power plants currently have firm gas supply contracts, while the rest rely on irregular supplies on a best-effort basis.

Experts speak

A Professor of Energy, Dayo Ayoade of the University of Lagos, blamed corruption and poor governance for the country’s electricity woes. According to him, the economy will continue to lose money and will not develop “provided we don’t take control of the power sector”.

Ayoade said the economy will continue to suffer because self-generation is too costly for the common man and small businesses.

“Until the power sector is put right, the economy will continue to suffer, Nigerians will continue to suffer, and there is no way out of this. Self-generation doesn’t work because it’s inefficient. The kind of resources you need to generate power, like gas, are out of the hands of private individuals or companies. So, it is very important that the government takes the lead on this,” he stated.

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The professor said the way forward is for the government to undertake holistic reforms of the sector, calling for the removal of electricity subsidies.

“That reform requires us to tell one another the truth. Nigerians will have to pay more money for power. Tariffs must reflect the cost of delivering electricity. Also, creating new institutions like GAMCO and others all the time means there is a proliferation of institutions in the sector. We need to streamline the sector; we need to control corruption,” he said.

Ayoade added that governance is key to the power sector. “One of the reasons the sector is not working is poor governance. Billions of dollars were spent on power in the past with no appreciable electricity. We can’t continue down that way. There are too many loopholes and leakages. We have to address this,” he submitted.

The convener of PowerUp, Adetayo Adegbemle, reiterated that the sector is bleeding because bulk power users have exited the grid, making cost recovery a burden. He said operators may not be able to boost power generation in the face of low recovery.

“We have allowed the big consumers to escape the national grid, pushing the load of sustaining it onto residential consumers. The tariff becomes more expensive for them, while producers continue to seek alternatives, albeit more costly. The Federal Government should, as a matter of urgency, reverse this trend to boost power supply,” he said.

Adegbemle also noted that the electricity subsidy is no longer sustainable, saying the government ought to have found a way out of the burden. He emphasised that the subsidy affects the entire value chain, as the Federal Government has failed to fulfil its subsidy obligations.

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CBN blacklists top loan defaulters

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The Central Bank of Nigeria (CBN) has officially restricted banking services for “chronic defaulters” and large-ticket obligors with non-performing loans.

In a sweeping move to enforce credit discipline and safeguard the nation’s financial system, the apex bank issued a policy statement on Wednesday following remarks by CBN Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja.

The Governor made it clear that the era of regulatory forbearance for delinquent borrowers is over.

He emphasised that the bank is shifting toward a more aggressive stance on corporate governance to ensure that the N4.61tn in new capital recently attracted by the banking sector is protected from systemic abuse.

“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector,” the Governor stated.

The new directive specifically targets “large-ticket obligors”, individuals or entities with significant outstanding debts classified as non-performing in the Credit Risk Management System. Under the new rules, these defaulters will be barred from accessing not only fresh credit but also essential contingent liabilities and trade instruments.

“We have implemented a restriction of banking services to non-performing large-ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability,” the statement read.

According to the CBN, the move is designed to instil a “culture of repayment” that has historically been lacking among high-profile borrowers. By cutting off access to instruments such as letters of credit and performance bonds, the regulator aims to prevent “credit jumping”, a practice where defaulters migrate between banks to accumulate more debt.

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“By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment, protecting depositors, and safeguarding the stability of the financial system,” the apex bank added.

Beyond the crackdown on debtors, Cardoso reaffirmed that the CBN remains firmly committed to orthodox monetary policy. This approach prioritises price stability and the use of traditional tools to anchor inflation expectations, moving away from unconventional interventions to restore confidence in the naira.

“The CBN remains firmly anchored in orthodox monetary policy, focused on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency,” the statement concluded.

For years, the Nigerian banking sector has struggled with “chronic defaulters”, wealthy individuals or massive corporations that borrow billions and fail to repay.

These are often referred to as “large-ticket obligors”. When these loans go bad, they threaten the liquidity of banks and the safety of ordinary citizens’ deposits.

Under the leadership of Cardoso, the CBN is pivoting toward “Orthodox Monetary Policy”. This means moving away from the era of massive development interventions and direct lending to sectors like agriculture and focusing instead on its core mandate: price stability and financial system regulation.

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