In a statement issued on Wednesday in Lagos, Ajayi-Kadir highlighted that the decision by the National Agency for Food and Drug Administration and Control (NAFDAC) to enforce the ban was based on concerns over the misuse of inexpensive alcoholic drinks, particularly among youths and commercial drivers. NAFDAC’s Director-General, Mrs. Mojisola Adeyeye, has defended the ban as a necessary measure to curb the misuse of such products.
However, Ajayi-Kadir pushed back against this rationale, pointing out that independent empirical studies have disproved the claim that minors were disproportionately abusing sachet alcoholic drinks. He noted that the industry had already taken proactive steps, including launching extensive public awareness campaigns aimed at promoting responsible consumption and discouraging underage drinking.
Ajayi-Kadir also criticized the ban for contradicting the stance taken by the House of Representatives on the issue, describing the move as “counterproductive.” He warned that the ban could cause significant economic disruptions, potentially undermining Nigeria’s fragile recovery from economic challenges.
Economic Impact: Trillions in Investments and Hundreds of Thousands of Jobs at Risk
The MAN Director-General outlined the potential negative impact of the ban on the Nigerian economy, claiming it could result in a loss of over ₦1.9 trillion in investments, most of which are made by local firms. He further warned that the ban could lead to the retrenchment of about 500,000 direct workers and an additional 5 million indirect workers, particularly in the manufacturing sector.
Ajayi-Kadir emphasized that the food and beverages sector, which had only recently begun to see improved capacity utilization, could be severely impacted by the ban. He argued that this could result in the closure of local businesses and weaken indigenous entrepreneurship across the economy.
Regulatory Concerns: Potential for Illicit Alcohol and Smuggling
In his statement, Ajayi-Kadir also sought to assure that locally produced sachet alcohol was made under hygienic conditions and in compliance with regulatory standards. He warned that enforcing a ban would not eliminate the demand for cheap alcoholic beverages, but could instead encourage the growth of the illicit alcohol market—products that are unregulated and beyond the control of government agencies.
Moreover, Ajayi-Kadir cautioned that such a move could create an opening for foreign brands, many of which are smuggled into the country, further straining local producers and leading to a loss in government revenue.
Appeal for Policy Reform
The Manufacturers Association of Nigeria is urging the Senate to intervene and reverse the ban on sachet alcoholic beverages. Ajayi-Kadir called for the swift approval and implementation of the validated Nigeria National Alcohol Policy, which he said would offer a more balanced approach to addressing the concerns surrounding alcohol consumption while protecting local businesses.
“MAN remains committed to ensuring that our members producing sachet alcohol comply with regulations and continue to support responsible consumption campaigns,” he affirmed.
The association’s appeal comes at a time when the broader manufacturing sector, which has faced numerous challenges in recent years, is already grappling with various pressures, including rising operational costs and supply chain disruptions. The outcome of this dispute between the government and the manufacturing sector could have far-reaching implications for the future of the industry.