Energy Drink Producers Charge Federal Govt To Protect N400bn Investment In Sub-sector

Local producers of energy drinks have called on the federal government to protect the over N400 billion ($500million) investment in the energy drinks sub-sector of the manufacturing industry by preventing the influx of substandard foreign energy drinks into the country.

Using N800 value for a dollar, the $500million translates to N400 billion in Nigerian currency.

The local producers who sought urgent actions to prevent sudden collapse of over $500m investments in the local industries involved in the production of energy/ health drinks, charged the government to safeguard the health of Nigerians from compromised formulation of imported energy and health drinks.

This, they said, saves direct employment of over 2,000 Nigerians and their numerous dependents by local energy drinks manufacturers, boasting that they have the capacity to produce enough drinks that can serve the entire country.

According to them, most of the imported energy or health drinks could not withstand Nigeria’s temperature on storage, and they often burst and constitute hazardous risk in the open market.

A statement by the director-general, Africa Brands Group, Mr Ayodele Joseph and made available to LEADERSHIP yesterday, said:  “there is a need to prevent the dumping of cheap foreign goods in Nigeria. Banning the importation of energy or health drinks will lead to more investment in local production, higher capacity utilisation, and a boost for the export drive of the local manufacturers.

“We need to stem the tide of Nigerian companies relocating to neighboring countries due to the seemingly hostile production environment. Nigeria needs to protect the high investment and employment opportunities in all associated companies e.g. Can and corrugated cartons industry.”

“We hereby request urgent addition of energy or health drinks to the Nigeria import prohibition list,” it stated.

The group noted that the unexpected decline in the local manufacture of energy drinks was already affecting investment in the associated industries.

Nigeria’s external reserves, they noted, need to be preserved for only essential imports, adding that, from the time of the last review of the import prohibition list, over 10 brands have invested in the local production of energy or health drinks, stressing that, as of date, total investment is over $500million.