Global Soap Sues NAFDAC, Demands N5bn Compensation

Date: 2014-06-01

The Global Soap and Detergent Industries Limited, Ilorin has sued the National Agency for Food, Drug Administration and Control (NAFDAC) for alleged unlawful closure.

The soap and detergent company instituted the legal action against NAFDAC at the federal high court, Ilorin demanding N5 billion general damages for alleged unlawful closure of the industry.

The originating summons filed by the counsel to the soap industry, Malam Yusuf Ali (SAN), said that since alleged unconstitutional closure of the industry on May 16, 2014, it has been losing about N60 million on weekly basis on account of maintenance, overhead and loss of income on production of its various products.

The company also asked the federal high court for injunction restraining the agency or any of its agents or officers from further disturbance, closure or interfering with the production activities of the factory premises at Asa Dam Road, Ilorin.

The counsel to the industry, who said that NAFDAC did not notify the industry of any contravention of the Act or Regulation, ordered the court to lift the closure of the soap company and open it immediately.

He also said that the unlawful closure of the soap industry has thrown about 200 staff among others who derive livelihood from it into economic crisis, adding that they had been rendered economically inactive.

In an affidavit in support of the originating summon, the factory/plant manager of the soap factory, Mr. Julius Adediran, said, “without any prior notification, the defendant through its officers and agents, in a commando manner, stormed the plaintiff’s factory at Asa Dam Road, Ilorin on May 16, 2014, disrupted the plaintiff’s operation/production, took away some of its workers and ultimately shut down the factory and all the production lines.”

He also alleged that NAFDAC’s conduct had opened the plaintiff to unquantifiable loss in terms of goodwill, reputation and ability to meet up its obligations to members of the public.

The factory/plant manager also said that it may become practically impossible to fully resuscitate machines and resume production if the soap factory is allowed to remain unused for long, “due to the complex configuration and layout of the machine and factory lines.”

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