February 27, 2024

MAN Expresses Concern as Ban on Alcohol in Sachets, PET Bottles Imperils N800 Billion Investments

 

 

By: Emmanuel Ibitoye

 

The Manufacturers Association of Nigeria (MAN) raises alarm over the potential repercussions of the recent ban on the production and sale of alcoholic beverages in sachets and PET bottles, citing threats to investments exceeding N800 billion. This ban impacts 25 companies, putting over 5.5 million direct and indirect jobs at risk.

 

During a press conference in Lagos on Friday, MAN deliberated on the ban imposed by the National Agency for Foods and Drugs Administration and Control (NAFDAC) on February 5, 2024. The Executive Secretary of the Distillers and Blenders Association of Nigeria (DIBAN), Mr. John Ichue, disclosed that the affected companies collectively invested over N800 billion, primarily sourced through loans from financial institutions. Many of these companies also have substantial stocks that can last for more than two years.

 

Segun Ajayi-Kadir, the Director General of MAN, emphasized the immense impact on industries that have invested significantly in packaging, distribution, and advertising. The ban jeopardizes these investments, which were made following the necessary approvals obtained from relevant authorities. Ajayi-Kadir expressed concern about the proposed policy, considering the potential debilitation of local businesses, including those of indigenous investors who have remained committed to the Nigerian economy.

 

He highlighted the ripple effect on the workforce, both direct and indirect, estimating that more than 5.5 million jobs could be in jeopardy. Despite the challenges faced by businesses in difficult times, the ban adds further strain, contributing to the closure of several companies and the departure of foreign investors from the country.

 

Ajayi-Kadir concluded by stressing the importance of moderation and responsible drinking for promoting good health, emphasizing the role of consumer choice in determining consumption patterns.

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