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Nigerian manufacturers warn of billions in losses over alcohol ban

Manufacturers Association of Nigeria and Distillers and Blenders Association of Nigeria raise alarm over potential economic fallout from NAFDAC's prohibition

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In a joint news conference held in Lagos, the Manufacturers Association of Nigeria (MAN) and the Distillers and Blenders Association of Nigeria (DIBAN) sounded the alarm over potential economic losses exceeding N800 billion stemming from the recent ban on alcoholic beverages packaged in sachets and pet bottles smaller than 200ml.

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The ban, enacted by the National Agency for Foods and Drugs Administration and Control (NAFDAC) effective January 31, is part of an agreement reached by a tripartite committee established by the Federal Ministry of Health in 2018.

Expressing deep concern, Mr. John Ichue, the Executive Secretary of DIBAN, emphasized the urgent need for the Federal Government to intervene and reverse the ban to prevent catastrophic losses in investments, machinery, and employment within the industry. Ichue highlighted the risk of potential closure for more than 25 companies in the wine and spirits sector if the ban persists.

Mr. Patrick Anegbe, Chairman of DIBAN, stressed the association’s commitment to responsible drinking practices and expressed apprehension about the ban’s impact on underage consumers. Anegbe advocated for access control measures instead of an outright ban to safeguard against underage consumption while ensuring the sector’s sustainability.

Industry stakeholders echoed concerns about the ban’s unintended consequences, warning of potential spikes in irresponsible drinking and economic hardship for consumers. Mr. Gandhi Anandan of Stellar Beverage cautioned that restricting access to smaller quantities could lead to heavier consumption among consumers, exacerbating health risks.

Mr. Wale Majaolagbe, CEO of Grand Oak Industries, criticized the ban as insensitive to the economic challenges facing Nigerians, emphasizing that alcoholic beverages have not been directly implicated in fatalities. He urged NAFDAC to reconsider the ban in light of its potential socio-economic ramifications.

Segun Ajayi-Kadir, Director-General of MAN, underscored the ban’s adverse effects on manufacturers, workers, and the economy at large. He emphasized the importance of government support for local industries and the need to address issues of counterfeit products while promoting responsible consumption practices.

As stakeholders rally against the ban, the debate intensifies over balancing public health concerns with economic considerations in Nigeria’s alcohol regulatory landscape. With livelihoods and investments at stake, industry leaders call for a nuanced approach to alcohol policy that prioritizes both health and economic sustainability.

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