Manufacturers warn of N3trn loss over planned sachet drinks ban 

Nigeria’s manufacturing sector faces the risk of losing approximately N3 trillion in investments if the Federal Government proceeds with a proposed ban on the production of sachet and PET-bottled alcoholic beverages.

The Food, Beverage, and Tobacco Senior Staff Association of Nigeria and the National Union of Food, Beverage, and Tobacco Employees stated that the decision threatens the survival of a key segment of the real sector and could destabilise thousands of households dependent on the value chain.

Speaking in Lagos, FOBTOB president, Comrade Jimoh Oyibo, said the ban contradicts earlier approvals granted to producers who invested heavily in facilities, jobs and distribution networks based on government assurances.

He noted that sachet spirits have become a pocket-friendly choice for consumers in a challenging economy and that enforcing the directive could cost about 50,000 direct jobs with wider implications for dependants and supply chain businesses.

Oyibo warned that the ban could push production underground, fuel smuggling and turn Nigeria into a dumping ground for unregulated beverages.

He urged the Senate to engage industry stakeholders and conduct on-site assessments before supporting a policy that could undermine revenue inflows, discourage future investment and reinforce negative policy signals to investors.

He added that thousands of workers who pay taxes and support the economy risk being laid off, while the government would lose substantial fiscal contributions if factories are shut.

NUFBTE president, Comrade Ibrahim Garba, said the Customs Service would also miss significant revenue targets if legitimate production is halted, stressing that the ban would increase the circulation of fake and unsafe drinks.

He appealed to lawmakers to reconsider the policy in view of its far-reaching economic impact on direct and indirect jobs across the country.