Nigeria is at risk of losing a staggering $167.7 billion share of the global direct selling market, warns QNET, a leading lifestyle and wellness company operating a product-based direct selling business model. The warning highlights the urgent need for the Nigerian government and regulators to put in place clear legislation and regulatory frameworks to protect and grow this largely untapped sector.
QNET executives recently sounded the alarm while addressing international journalists during the annual V-Malaysia convention in Penang Island, Malaysia. Jean Francois Huertas, QNET’s Deputy CEO, emphasized the challenges Nigeria faces due to the absence of direct selling laws which has allowed fraudulent actors to exploit loopholes and taint the industry’s image. “The absence of a Direct Selling legislation is negatively affecting how the industry operates in many parts of Africa,” Huertas said, highlighting that unlike South Africa, Nigeria lacks a governing framework to distinguish legitimate companies from scams.
This regulatory gap has led to widespread misconceptions among Nigerians about direct selling, often confusing legitimate business opportunities with fraudulent pyramid schemes. Trevor Kuna, QNET’s Chief Marketing Officer, noted, “Legislation will help people better understand what the direct selling industry is, responsibilities of companies, buyers and other stakeholders in the industry. This will ensure more clarity and prevent people from scamming or taking undue advantage of others.”
The economic implications are significant. The direct selling industry globally generates over $167 billion annually, offering millions worldwide affordable entrepreneurship options through product-based businesses rather than recruitment-focused schemes. Nigeria’s failure to establish regulatory protections means it risks missing out on this lucrative market and the economic empowerment it brings to countless individuals. Moreover, scam syndicates exploiting the Nigerian market have led to increased fraud cases and loss of trust in genuine operators like QNET.
QNET is proactively collaborating with Nigerian law enforcement agencies and regulators to combat fraudulent activities masquerading as direct selling. The company also supports educational initiatives, including its FinGreen financial literacy program launched in Nigeria, aimed at empowering youths with entrepreneurial skills and knowledge to avoid scams and build sustainable businesses.
Industry experts like Nikhil Patel, QNET’s Chief Legal Officer, argue that adopting formal direct selling legislation would not only protect consumers but also stimulate economic growth by legitimizing and formalizing a thriving sector. “A structured Direct Selling Association and legislation will open doors for investment, defend consumer rights, and elevate standards,” Patel said.
For Nigeria, the path forward lies in embracing the fast-growing global direct selling market through regulation, public awareness, and strategic partnerships. Such measures can unlock economic opportunities, support thousands in earning dignified incomes, and assure consumers of safe, transparent business practices.
In conclusion, QNET’s warning underscores a critical gap in Nigeria’s economic policy landscape—embracing direct selling with clear regulations offers a win-win for entrepreneurship, consumer protection, and national economic growth. Prompt government action on this front is essential to avoid losing billions in global market share and to harness the full potential of direct selling for Nigeria’s development.
