Food Union Charges Federal Govt Against Excise Duty Imposition

The leadership of National Union of Food, Beverages and Tobacco Employees (NUFBTE), Comrade Lateef Oyelekan has charged federal government against further job loss in the industry through imposition of excise duty.

Oyelekan, who made this known, expressed the displeasure of NUFBTE over government’s plan to create more harsh business condition for manufacturers by planned reintroduction of excise duty on soft drinks in the country.

Describing the move as unbearable impact on food, beverages and tobacco industry, he stressed that, the move as another way to shut down more companies and throw thousands of workers into unemployment market.

“With more than 8000 job lost within nine months in 2022 alone, government should look into how to create conducive atmosphere than creating unnecessary harsh businesses through lack of electricity, multiple taxation and then the fresh move to impose excise duty on carbonated drinks,” he said.

Oyelekan stressed that, existence of Nigerian Bottling Company, maker of Coca Cola and 7-up in Nigeria are being threatened with the harsh business environment as they have already incurred loss of over N2 billion based on volume of expired products which cannot be sold as result of consumers’ reaction to price increment.

“Unless the plan by Nigerian Customs Services step down the plan imposition of excise duty, the companies that already going through stressful existence will be forced to take more painful action.”

In a protest letter addressed to Federal Government and to the Minister of Labour and Employment, Oyelekan noted that, the sector which used to be one of largest employers of labour has been reduced to sector now struggling for survival and appealed for caution in order to save jobs of members.