Manufacturers Face Imminent Job Loss Amid Alcohol Packaging Ban

Manufacturers fear 55 million job loss
Manufacturers fear 55 million job loss

The Distillers and Blenders Association of Nigeria (DIBAN) has issued a stark warning, declaring that the recent ban on the production and sale of sachet and PET bottle alcohol by the Federal Government could result in the loss of investments worth over N1.2 trillion and render 5.5 million direct and indirect workers unemployed.

In an open letter addressed to President Bola Tinubu, DIBAN, a sub-sector under the Manufacturers Association of Nigeria, vehemently opposed the ban imposed by the National Agency for Food and Drug Administration and Control (NAFDAC) on January 31, 2024. NAFDAC’s rationale behind the ban was the alleged link between sachet and PET bottle packaging of alcoholic beverages and increased alcohol consumption among underage individuals, as well as the facilitation of drug abuse.

DIBAN rebuked NAFDAC’s decision, asserting that there was no legal or moral basis for the ban and refuting the claims that alcoholic beverages in sachets and PET bottles were tainted with hard drugs. The association also cited its significant economic contributions, with investments worth over N1.2 trillion and employment for over 5.5 million individuals, highlighting the potential ramifications of the ban on the economy.

Moreover, DIBAN emphasized its extensive efforts to discourage alcohol consumption among youths, investing over N1 billion in media advocacy and campaigns. The association further argued that smaller packaging promoted portion control, warning that the ban would inadvertently encourage excessive alcohol consumption.

DIBAN urged President Tinubu to intervene by rescinding the ban and proposed the establishment of licensed liquor stores/outlets and stringent regulatory monitoring as viable alternatives. Failure to reverse the ban, the association cautioned, would not only lead to staggering job losses but also substantial revenue deficits for both federal and state governments.

Conversely, the Director-General of NAFDAC, Mojisola Adeyeye, defended the ban as a collective recommendation involving key stakeholders. However, the Manufacturers Association of Nigeria contested NAFDAC’s assertion, affirming that its members did not support the decision to prohibit the sale of the targeted alcohol products.

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