Manufacturers Fear Job Losses Following Ban on Sachet Alcohol

The Distillers and Blenders Association of Nigeria (DIBAN) has expressed concerns over potential job losses and investment setbacks following the recent ban on the production and sale of sachet and PET bottle alcohol in Nigeria.

In an open letter addressed to President Bola Tinubu, DIBAN highlighted the adverse impact of the ban, estimating that over N1.2 trillion in investments could be lost and approximately 5.5 million direct and indirect workers would be affected.

The ban, implemented by the National Agency for Food and Drug Administration and Control (NAFDAC) on January 31, 2024, cited concerns about underage alcohol consumption and alleged links between sachet alcohol packaging and increased drug use. However, DIBAN contested NAFDAC’s justifications, arguing that there was no legal or moral basis for the outright ban.

DIBAN emphasized that its members, consisting mainly of indigenous companies, had invested heavily in the production and manufacturing of wines and spirits, contributing significantly to Nigeria’s economy. The association urged President Tinubu to intervene and lift the ban, suggesting alternative measures such as increased monitoring and compliance checks by regulatory agencies.

The letter underscored the potential economic repercussions of the ban, warning of job losses and revenue decline for both the federal and state governments. DIBAN called for urgent action to reverse the ban and proposed the establishment of licensed liquor stores across Nigeria as a more effective regulatory approach.

While NAFDAC proceeded with the ban’s implementation on February 1, 2024, DIBAN’s concerns highlight ongoing tensions between regulatory measures and industry interests in Nigeria’s alcohol market.

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