Ban on Sachet Alcohol: Collapse of N800b investments imminent – Manufacturers

 

 

Nigeria’s manufacturers, under the aegis of the Manufacturers Association of Nigeria (MAN), have  raised the alarm that the implementation of the ban on wine and spirits in sachets and PET bottles by the National Foods and Drugs Administration and Control (NAFDAC)  may lead to an influx of foreign brands into that market segment, and the loss of  an estimated investments totalling over N800billion.

 

 

They also warned that over 5million direct and indirect workers, and   about 25 companies, may also  be negatively   impacted by the development.

 

 

The Director General of MAN, Segun Ajayi-Kadir, at a media briefing held recently in Lagos,  described the ban as ill-advised, adding that adequate consideration was not given to the impact such move will have on the manufacturers, the workers, the citizenry and the economy.

 

 

He  argued that  though NAFDAC  raised some concerns in 2018, and recently wanted to enforce those concerns,, but industry players were able to address them, between 2018 and 2023, through research and campaign, which cost over N1billion.

 

 

“The goal of the campaign was to enlighten citizens on responsible consumption, by supporting the Federal Ministry of Health and NAFDAC to undertake the advocacy, messaging, training and education of the public.

 

 

” During this period DIBAN spent over one billion naira (N1, 000,000,000) (as at December 2023) on various campaigns to ensure zero consumption of alcoholic beverages by the under aged and in promoting responsible use of alcoholic beverages among adults,” he stated.

 

 

The MAN DG queried the rationale behind the decision of the agency to throw away the recommendation of the research agency, it contracted, and opt for an outright ban, despite the show of corporate responsibility and proactive support by the players to eliminate the root cause of the issue.

 

 

In his appeal to President Bola Tinubu to quickly intervene, the President of the Distillers and Blenders Association of Nigeria (DIBAN), Paul Anegbe, warned that the implementation  of the policy may affect over N800billlion investment outlay in the sector.

 

 

According to him, besides the fact that operators still have some stock that could still last them for sometime, some.of the machines being used for the products would no longer be useful if the ban is enforced, since they are configured solely for the production of sachet and PET alcohol.

 

 

The Executive Director, Nigeria  Distillery, Wale Majolagbe, believes the ban would only make many consumers go back to their old, unhealthy drinks; since they would not be able to afford the bigger bottles being recommended by NAFDAC.

 

 

He noted that the ban also negates the Responsible Drinking Campaign which NAFDAC is emphasizing  since consumers would no longer have the option of the smaller packs.

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