Over 500,000 direct jobs at risk if sachet, pet bottle alcohol banned, FOBTOB warns

The organised labour has, again, raised concerns over the fresh push by the Nigerian Senate and the National Agency for Food and Drug Administration and Control (NAFDAC) to ban the production of alcohol in sachets and pet bottles, warning that over 500,000 jobs and investment worth over N2 trillion would be lost to the ban.

The Food, Beverage, and Tobacco Senior Staff Association (FOBTOB), a major stakeholder in the food production industry and an affiliate of Trade Union Congress of Nigeria (TUC), raised the concern in Lagos on Tuesday.

Jimoh Oyibo, the national president of the association, who addressed the media, listed the immediate economic implications of such action to include the loss of the investment in machinery and raw materials to the tune of N2 trillion. According to Oyibo, over 500,000 direct employees, and an estimated five million indirect workers (including those companies supplying materials needed for the production, those involved in marketing and distribution, and other logistics) will have their employment jeopardised.

Speaking further, he said the capacity utilisation of those companies would be eroded, and the recent improvements witnessed would also be lost, and the confidence of local entrepreneurs in the economy would be shaken.

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“The possibility of the proliferation of adulterated, unregulated, unregistered, and unbranded alcoholic beverages will be high, because we understand ourselves as Nigerians; we will always find a way. This will negate the purported intention of the ban.

“We strongly believe that such ban would only give opportunity for smugglers to flood the market with foreign brands, which would ultimately result in loss of revenue to the government.”

Against this backdrop, the union appealed for aversion of the grave repercussions that will follow the ban.

Oyibo called on the Senate to be fair by inviting all stakeholders, including the union to a public hearing on the push for the ban, just as he urged the National Assembly to exhibit good faith in the matter.

“The Senate should invite relevant stakeholders to a Public Hearing in order to “hear the other side” and be adequately educated to make an informed decision.
Prior to the above, the Senate should please rescind its directive to NAFDAC to ban alcoholic beverages in sachet and upwards of 200ml PET/glass bottle from December 31st 2025.

“The Senate should carefully look at and consider the endorsement of the validated National Alcohol Policy in view of its multi-sectoral implementation framework.
The Senate should consider the totality of the value chain in the alcohol beverage industry in light of the impact of the ban on both formal and informal employees, and legitimate manufacturers.

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We encourage the Senate Committee to have an on-the-spot assessment by visiting these companies to have a firsthand understanding of the huge investments that will be laid to waste if the order on the ban is carried out.”

He further warned that such ban would make the government lose revenue that would have come from the taxes to be paid by these members who will lose their jobs.

“The children we are trying to protect will possibly be out of school when their parents cannot cater for them again, and will be more prone to other social vices in the society. As the saying goes, “it takes the mother chicken to live and survive to be able to raise its young ones,” Oyibo said.

He noted that FOBTOB was committed to ensuring that employers in the industry comply with the highest regulations and standards since its members were the ones involved in the production of these beverages.