Home Business MAN Warns NAFDAC Ban on Sachet Alcohol Could Cost Nigeria N1.9tn, Millions of Jobs
Business

MAN Warns NAFDAC Ban on Sachet Alcohol Could Cost Nigeria N1.9tn, Millions of Jobs

Share
Share

The Manufacturers Association of Nigeria (MAN) has cautioned that the National Agency for Food and Drug Administration and Control’s (NAFDAC) plan to ban the production and sale of sachet and small PET bottle alcoholic beverages by December 31, 2025, could result in over N1.9 trillion in lost investments and jeopardize about 5.5 million jobs.

MAN Director-General Segun Ajayi-Kadir said the ban would adversely affect indigenous manufacturers and destabilize the economy just as the manufacturing sector shows signs of recovery. “This pronouncement will result in a loss of over N1.9 trillion in investment, largely by Nigerian companies, with mass retrenchment affecting over 500,000 direct employees and about five million indirect employees in contracts, marketing, and logistics,” he stated.

In a Wednesday statement, Ajayi-Kadir described the ban as “unfair and against the run of play in the industry,” noting that it contradicts agreements reached by stakeholders during the validation of the draft National Alcohol Policy in October 2025. He added that the Senate’s directive followed NAFDAC’s position without adequate consultation, despite the agency being part of the multi-sectoral validation process led by the Ministry of Health.

Ajayi-Kadir recalled that the enlarged committee, which included NAFDAC, law enforcement agencies, and industry representatives, had agreed on progressive alternatives to a total ban, including stricter enforcement, licensing of liquor outlets, enhanced product monitoring, and nationwide campaigns discouraging underage consumption.

“It is concerning that the Senate ordered an outright ban without holding public hearings or engaging stakeholders. The House of Representatives had earlier taken a more consultative approach, recommending a one-year extension for validation,” he said.

MAN’s DG also dismissed claims that sachet alcoholic beverages are widely abused by minors, citing government-backed studies that found no evidence of such misuse. He noted that manufacturers have already invested over N1 billion in responsible-drinking campaigns across various media platforms.

Ajayi-Kadir warned that a total ban could fuel a black market for unregulated and potentially dangerous alcohol. “To ban the product would open the floodgates to illicit and unsafe substances beyond regulatory control,” he said. He emphasized that sachet alcohol caters to adults with low purchasing power, and banning it would favor foreign and smuggled brands over local producers.

He urged the Senate to rescind its order and called on NAFDAC to halt the implementation of the ban, advocating instead for the swift adoption of the validated National Alcohol Policy. “We must be mindful of the economic impact of sudden regulatory changes that threaten legitimate manufacturers and millions of value-chain operators,” Ajayi-Kadir added.

NAFDAC, however, defended the ban. Director-General Mojisola Adeyeye cited misuse of cheap alcoholic drinks among youths and commercial drivers, linking them to public health issues, domestic violence, road accidents, school dropouts, and other social vices. She said the proliferation of high-alcohol-content beverages in small containers makes them “easily accessible, affordable, and concealable,” exacerbating addiction among minors and drivers.

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles
Business

The Alternative Bank Honoured for Pioneering Innovation in African Islamic Finance

The Alternative Bank has been recognised as the ‘Innovative Bank of the...

Business

Nigeria’s Crude Oil Output Inches Up in October, Still Below OPEC Quota

Nigeria’s average crude oil production inched up slightly to 1.401 million barrels...

Business

Nigeria, Benin Customs Deepen Cooperation to Strengthen Border Security, Trade Relations

In a renewed push to enhance border management and foster regional cooperation,...

Business

NMDPRA Assures Nigerians of Adequate Fuel Supply, Scraps 15% Import Duty on Petrol and Diesel

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called on...