Manufacturers Express Concern Over Potential Job Losses Due to Sachet Alcohol Ban
The Distillers and Blenders Association of Nigeria (DIBAN) has expressed concerns over potential job losses and economic consequences following the Federal Government’s ban on the production and sale of sachet and PET bottle alcohol in the country. According to DIBAN, the ban could result in the loss of investments worth over N1.2 trillion and lead to 5.5 million direct and indirect job losses.
In an open letter addressed to President Bola Tinubu, DIBAN, a sub-sector under the Manufacturers Association of Nigeria (MAN), argued against the ban imposed by the National Agency for Food and Drug Administration and Control (NAFDAC). The ban was implemented on January 31, 2024, citing concerns about underage drinking and the alleged association of sachet and PET bottle alcohol with hard drugs.
DIBAN contested NAFDAC’s justification for the ban, stating that alcoholic beverages in sachets and PET bottles are not produced or manufactured with hard drugs. The association highlighted its significant contributions to the economy, with investments worth over N500 billion and indirect investments totaling over N800 billion. DIBAN also emphasized its role in providing direct employment for over 500,000 people and indirect employment for over 5 million individuals.
In response to the ban, DIBAN called for the immediate lifting of the ban by NAFDAC through a directive from the president. The association suggested the establishment of licensed liquor stores/outlets by Local Government Areas across Nigeria as a more effective approach to regulating alcohol consumption. DIBAN also urged for increased monitoring and compliance checks by relevant government agencies to ensure product quality and safety.
If the ban is not reversed, DIBAN warned of dire consequences, including the loss of investments, job losses, and reduced government revenue from taxes and duties. The association emphasized the need for a balanced approach to regulation, highlighting the role of smaller sizes in promoting responsible consumption.
Despite NAFDAC’s implementation of the ban on sachet and PET bottle alcohol on February 1, 2024, MAN has contested the decision, indicating that its members did not support the ban.
