Manufacturers and retailers of satchet and pet bottles of alcoholic drinks less than 200ml have continued to lament the ban of the product by the National Agency for Food and Drug Administration and Control (NAFDAC).
The stakeholders said the ban is taking a toll on the retailers, consumers, and low income earners who depend on these products as means to generate income.They added that the decision is affecting over 25 beverages companies.
According to a group of medium scale business owners whose livelihood depends on the sales of these drinks, G-10 Group, the decision by NAFDAC at this time appears like a deliberate act targeted at the poor masses who are trying to cope with a harsh economy.
In a statement, the group said, “banning satchet alcoholic drinks at this crucial time entails a multifaceted analysis of Nigeria’s potential economic ramifications, encompassing both short-term disruptions and long-term implications for various stakeholders within the economy.
“The size of these sachet drinks is the reason people drink responsibly like having to buy big bottles and being tempted to drink it all. Currently the Nigeria economy is challenged due to so many factors, from terrorism, to internal and external conflict, government expenditure, and domestic investment and this is not the best time to make harsh decisions that can have social economic impact on people who are trying to cope with life.”
A business owner in the beverage sector, Austine Kiki said that the ban on satchet alcoholic drinks intersects with broader socio-economic issues, including poverty, inequality, and public health. “While the policy may aim to curb alcohol-related harm, its impact on vulnerable populations, including those dependent on satchet drinks for livelihoods or coping mechanisms, must be carefully considered.
“It could be recalled that at the beginning of the year 2024 PwC released a report on the economic trends that shape Nigeria’s Economy and one of the trends stated that the poverty level is projected to increase to 38.8 per cent because purchasing power will remain an issue. Business outlook consumer spending may be pressured in 2024 due to rising prices of goods and services (increasing food and transportation costs), coupled with lower disposable income. However, private consumption is expected to be marginally better than 2023,” he said.
An Abuja- based retailer in foods and beverages, Charles Ugochukwu said that poverty levels are projected to increase to 38.8 per cent in 2024 adding that despite the low unemployment rate in the country, low consumer spending and purchasing power remains an issue, especially in the absence of commensurate increase in minimum wage to mitigate the inflationary growth in the economy.
He said, “The decision to phase out the sachet drink at this time has more disadvantages than advantages even though it is a good measure to curb health damage that alcohol causes in the body. At the last protest organized by the Association of Food, Beverage & Tobacco Employers (AFBTE), it was stated that the outright ban was wrong since sachet drinks were registered food products. The union added that it worried over what will become of the thousands of the workforce who will lose their jobs if the industry is shut down.”
He said that according to AFBTE, the total investment of the business is over N800 billion and over 500 million employees will be affected if the government and NAFDAC do not put an end to the ban. “The drink is produced by reputable companies that are registered under NAFDAC and are registered under the food and beverages segment. This alone, they say will help eliminate the issue of fake sachet alcoholic drinks in the Nigerian market,” said Ugochukwu.
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