The Federal Government’s recent ban on the production and sale of alcohol in sachet and PET bottle forms is expected to result in the loss of over N1.2 trillion in investments and the unemployment of 5.5 million direct and indirect workers, according to the Distillers and Blenders Association of Nigeria.
In a public letter to President Bola Tinubu, DIBAN, a division of the Manufacturers Association of Nigeria, declared.
DIBAN stated in the letter dated February 18, 2024 that the National Agency for Food and Drug Administration and Control completely outlawed the manufacturing and distribution of alcoholic beverages in PET bottles and sachets as of January 31, 2024.
The regulator provided the following justifications: first, the packaging of alcoholic beverages in sachets and pet bottles stimulates the use of hard drugs; second, it is the cause of the rise in underage alcohol consumption.
In a rebuttal, DIBAN claimed that NAFDAC had any moral or legal basis for outlawing the manufacture of alcoholic beverages in pet bottles and sachets.
Contrary to what NAFDAC claimed, it stated that no hard drugs were used in the production or manufacturing of the alcoholic beverages.
The distillers further pointed out that NAFDAC’s claim that alcoholic beverages in sachets or pet bottles contain hard narcotics is unsupported by any records from the National Drug Law Enforcement Agency.
According to DIBAN, its conglomerate membership consists of more than 24 corporate organizations, the majority of which are indigenous businesses with a small number of multinationals. These organizations produce and manufacture wines and spirits using more than 70% local inputs.
A portion of the letter stated, “DIBAN’S investment is worth over N500bn.” Over N800 billion is also the value of indirect investments made by other businesses that are connected to DIBAN in some way.
“DIBAN contributes more than N1.2 trillion to Nigeria’s GDP. More than half a million people work directly with DIBAN. Additionally, nearly 5 million people received labor or indirect employment through DIBAN.
When NAFDAC first floated the idea of a ban, the organization reportedly spent over N1 billion on campaigning, marketing, and media outlets—both print and electronic—to make sure that underage consumption of alcohol is strictly prohibited, no matter how small.
Furthermore, it was said that larger portions are encouraged by larger sizes, but smaller portions are encouraged by smaller sizes because it makes sense to consume larger quantities when purchasing larger items.
The statement read, “The Agency is simply encouraging excessive consumption of alcoholic beverages if NAFDAC takes away small sizes.”
DIBAN recommended that the president immediately lift the NAFDAC restriction on the production of alcoholic beverages in sachets and pet bottles by issuing an Executive Order or a directive to NAFDAC.
It also demanded that Local Government Areas throughout Nigeria open liquor establishments with licenses.
In order to maintain stringent product quality in terms of contents and safety, DIBAN proposed that the government should, instead of enacting an outright ban, see to it that NAFDAC, FCCPC, NDLEA, and other government agencies are monitoring and checking compliance more frequently.
It issued a warning that there would be investments of N1.2 trillion and 5.5 million job losses if nothing was done to change the current situation.
“Excise Duty, VAT, PAYE, Corporate Tax, and other revenues that should have accrued to these Governments will be lost, resulting in huge revenue streams loss for the Federal and State Governments,” stated DIBAN.
NAFDAC started enforcing the previously declared prohibition on alcohol in PET bottles and sachets on February 1, 2024.
NAFDAC started enforcing the previously declared prohibition on alcohol in PET bottles and sachets on February 1, 2024.
Mojisola Adeyeye, the Director-General of NAFDAC, stated that the Federal Ministry of Health, NAFDAC, and the Federal Competition and Consumer Protection Commission were among the committee members that recommended the ban.
MAN, for its part, refuted NAFDAC’s assertion, stating that its members disagreed with the decision to outlaw goods falling under the blacklisted category.