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The short answer
If you bring Nigerian goods into another country to sell, you are usually the importer, and product liability law often makes the importer answer for a defect as if it had made the product. In the UK, section 2 of the Consumer Protection Act 1987 names the importer alongside the producer. Product liability insurance is the cover that pays claims of injury or damage caused by goods you sell.
A customer abroad buys a jar of shea butter, a pack of chin chin or a bottle of zobo concentrate from your shop or website. Weeks later they say it caused a rash, a reaction or a broken tooth. The maker is in Kano or Aba and has no presence in your country. The person the customer can reach is you. That is the core of product liability for diaspora traders.
Why the importer is treated as the producer
Product liability laws exist so an injured consumer can claim from someone within reach. The UK is a clear example. Section 2 of the Consumer Protection Act 1987 makes liable, for damage caused by a defective product:
- the producer;
- anyone who holds themselves out as the producer by putting their name or brand on it (an own-brander);
- anyone who imported the product into the UK in the course of business to supply it to another.
Section 2(3) adds a fallback: a supplier, such as a shop, becomes liable if it cannot identify the producer, importer or its own supplier within a reasonable time after being asked. So even a retailer who bought from a wholesaler in London can be pulled in if it kept no record of where the goods came from.
If you buy direct from a Nigerian maker and ship it yourself, you are the importer. If you also sell under your own label, you are an own-brander too. Either way, the claim can stop with you. You may have rights against your Nigerian supplier under your contract, but enforcing them in Nigeria is slow and uncertain, which is why the law looks to the importer in the first place.
The European Union has also been revising its product liability rules, with particular attention to products made outside the EU. If you sell into an EU country, ask a local adviser which rules apply there and from when; this article does not set out the EU position. Other countries have their own rules; the principle that someone local answers for imported goods is common, but the detail differs.
What counts as a defect
Most claims around Nigerian goods come from a few sources: contamination (aflatoxin in groundnuts or melon seeds, microbial growth in drinks), undeclared allergens, unsafe ingredients in cosmetics, and missing or wrong instructions. A product can be defective because of its labelling as much as its contents. That links product liability to the import rules you already have to meet; see labelling Nigerian food for sale abroad and shea butter and black soap cosmetics rules.
The insurance that covers it
Product liability insurance pays compensation and legal costs if goods you sell cause injury or property damage. The US Small Business Administration lists it as a distinct type of business cover alongside general liability, professional liability and commercial property, and notes that some requirements are set by individual states. In many countries it is sold within a broader public and products liability policy.
Points to raise with a broker:
- Declare that goods are imported from Nigeria. Insurers price the risk on where goods are made and whether you can recover from the maker. Non-disclosure can void cover.
- Territorial limits. If you sell online into several countries, check the policy covers claims brought in each of them.
- Product types. Food, cosmetics and supplements are rated differently from fabrics or art.
- Recall costs. Product liability usually pays third-party claims, not the cost of pulling stock. Recall cover is often separate.
- Cargo is separate. Damage to goods in transit is a cargo insurance matter; see cargo insurance for goods from Nigeria.
If a claim arrives
Tell your insurer straight away, before admitting anything to the customer, keep the product and packaging, and pull together the supplier, invoice, batch and test records for that lot. Those records are what lets you show the product's history, or name the producer if you are a retailer.
Steps that reduce the risk
- Vet the supplier. Check CAC registration and, for food and cosmetics, NAFDAC export documents; see NAFDAC export permits.
- Test before you sell. Independent laboratory results on each batch are your best evidence that the product was not defective when it left you. See pre-shipment inspection.
- Keep a traceable record of supplier, invoice, batch and shipment for every lot, so you can meet the section 2(3) duty to identify who supplied you.
- Write it into the contract. A written purchase agreement with a quality specification and an indemnity gives you a claim back against the maker, even if collecting it is hard.
- Handle complaints quickly and keep records. A prompt, documented response helps with insurers and regulators.
Where Pryme fits
Paying a Nigerian supplier by traceable transfer, rather than cash through a middleman, gives you the paper trail product liability depends on. A Pryme Business Account holds naira and foreign currencies, and a payment to a supplier can carry a receipt you can share; see business multicurrency and receipts. Outside Nigeria, Pryme's services are provided through regulated partners.
Questions people ask
Am I liable if a Nigerian product I import injures someone?
Often yes. In the UK, section 2 of the Consumer Protection Act 1987 makes the person who imported the product into the UK for business liable alongside the producer. Other countries have similar rules; check locally.
Does product liability insurance cover a product recall?
Usually not. Product liability pays third-party injury and damage claims; recall costs are often a separate cover. Ask your broker.
Can I sue my Nigerian supplier if a customer claims against me?
You may have a contractual claim, especially with a written agreement and indemnity, but enforcing it in Nigeria can be slow. That is why insurance and testing matter.
I only sell a few items online. Do I still need cover?
The legal exposure does not depend on volume. Whether insurance is compulsory varies by country and business type; the US SBA notes some requirements are set by states.
Sources
- Consumer Protection Act 1987, section 2, legislation.gov.uk · accessed Oct 2026
- US Small Business Administration, Get business insurance (28 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.