Proposed sachet drinks ban may cost Nigeria over ₦500 billion - Manufacturers

This was disclosed by the Distillers And Blenders Association of Nigeria (DIBAN), a sub-sector of the Manufacturers Association of Nigeria (MAN).

The group which comprises over 24 corporate organisations appealed to the Minister of State, Health and Social Welfare, Dr. Tunji Alausa to reconsider the decision and save their businesses and the 80% of the workforce that may be laid off if the ban is enforced.

The body further said apart from providing direct and indirect jobs of over 5,000,000, the industry contributes in value addition of over ₦1.2 trillion to the Nigerian economy.

Recall the National Agency for Food and Drug Administration and Control (NAFDAC), in 2022, took the first steps towards banning the production and consumption of sachet alcoholic beverages by stopping the registration of alcohol in sachet and small volume PET and glass bottles below 200ml. 

NAFDAC also explained that for the beverages that have already been registered, the body would ensure that the validity of renewal in the affected category will not exceed the year 2024.

According to the NAFDAC director general, Prof Mojisola Adeyeye, the uncontrolled access and availability of high-concentration alcohol in sachet and small-volume PET or glass bottles was directly responsible for substance and alcohol abuse in Nigeria.

In response, DIBAN has called on the federal government and NAFDAC to consider the impact the decision will have on the unemployment market.

Analysts, however, have weighed in on the situation as the sachet products which still have a huge market share, serve the purpose of reaching consumers who may not have the funds to buy the same products sold in bigger packages. 

The regulatory agency has been urged to look towards regulating the product instead of an outright ban as this would enable the government to achieve consumption control and at the same time, save the economy by maintaining the market share of the product.