The recent ban on alcoholic beverages in sachets and PET bottles less than 200ml by the National Agency for Food and Drug Administration and Control (NAFDAC) has raised concerns among stakeholders in the food and beverage industry. Manufacturers and other stakeholders fear that investments worth over N800 billion may be lost due to this ban. The Manufacturers Association of Nigeria (MAN) and the Distillers and Blenders Association of Nigeria (DIBAN) have expressed their concerns, highlighting the potential impact on the manufacturing sector and the economy as a whole.
The ban on alcoholic beverages in sachets and PET bottles less than 200ml has sparked a debate between NAFDAC and stakeholders in the food and beverage industry. While NAFDAC aims to address health and safety concerns associated with the consumption of these products, manufacturers and industry associations argue that the ban could have severe economic consequences.
According to the Manufacturers Association of Nigeria (MAN) and the Distillers and Blenders Association of Nigeria (DIBAN), the ban threatens to shut down over N800 billion worth of investments in the food and beverage subsector. These investments include machinery, raw materials, and financial resources. The ban also puts approximately 5.5 million direct and indirect jobs at risk.
Stakeholders argue that the ban could lead to the closure of more than 25 companies in the wine and spirits sector, potentially resulting in significant job losses. They emphasize that the investments made in this sector were obtained from commercial banks at high interest rates, and many companies have already procured raw materials that would last them for the next four to five years.
The industry associations, MAN and DIBAN, have called on the federal government to intervene and reverse the ban. They propose finding a common ground that addresses both health concerns and the interests of the business community. Stakeholders suggest implementing access control measures to prevent underage consumption, rather than an outright ban.
The ban on sachet alcoholic drinks and PET bottles less than 200ml is not only a concern for the industry but also for the Nigerian economy as a whole. The departure of multinational corporations, such as Procter & Gamble and GlaxoSmithKline, due to the ban and other challenges, has already put thousands of jobs at risk. Unemployment rates in Nigeria have been a persistent issue, and this ban could further contribute to the loss of jobs and livelihoods for Nigerians across the country.
The ban on alcoholic beverages in sachets and PET bottles less than 200ml has raised significant concerns among stakeholders in the food and beverage industry. With investments worth over N800 billion at stake and millions of jobs on the line, industry associations are urging the federal government to reconsider the ban and find alternative solutions that address both health concerns and the interests of the business community.
