The Distillers And Blenders Association Of Nigeria has said investments totaling over N1.2tn could be lost while around 5.5 million workers might lose their jobs if Federal Government continues with the ban on producing and selling sachet and PET bottle alcohol in the country.
DIBAN in an open letter dated February 18, 2024, addressed to President Bola Tinubu stated over 500,000 direct employees and 5 million indirect employees are at risk of loosing their jobs.
The sub-sector under the Manufacturers Association of Nigeria that the alcoholic beverages were not produced or manufactured with hard drugs contrary to the assertion of NAFDAC.
The letter read in part, “DIBAN’S investment is worth over N500bn. Indirect investments of other companies having one business or the other to do with DIBAN is also worth over N800bn.
“DIBAN’S contribution to the economy of Nigeria is worth over N1.2tn. There are over 500,000 employees in the direct employment of DIBAN. DIBAN also provided indirect employment or work for over 5 million people.”
According to DIBAN, when NAFDAC first hinted at the ban, the association had spent over N1bn to support various media, advocacy and campaigns in various media outfits both print and electronics to ensure consumption of alcoholic beverages among our youth is not allowed no matter how little.
“If NAFDAC takes away small sizes, the Agency is simply encouraging excessive consumption of alcoholic beverages,” it said.
DIBAN urged the president to issue a directive to NAFDAC or an Executive Order immediately lifting the ban by NAFDAC on the production of alcoholic beverages in sachets and pet bottles
It also called for the establishment of licensed liquor stores/outlets by Local Government Areas across Nigeria.
DIBAN posited that rather than implement an outright ban, the government should see to increased monitoring and compliance checks by NAFDAC, FCCPC, NDLEA and other Government Agencies to ensure strict product quality in terms of contents and safety.
It warned that if nothing is done to reverse the status quo, investments worth N1.2tn while 5.5m people will be thrown out of jobs.
“The Federal and State Governments will lose huge revenue streams from Excise Duty, VAT, PAYE, Corporate Tax and other revenues that should have accrued to these Governments,” DIBAN said.
Recall on February 1, 2024, NAFDAC began the implementation of an earlier announced ban on sachet and PET bottle alcohol.
