MAN: Job loss looms over ban on sachet alcohol drinks

The recent ban on alcoholic sachets and pet bottle drinks by the National Agency for Food and Drug Administration and Control (NAFDAC) has sent shockwaves through the manufacturing sector in Nigeria. The Manufacturers Association of Nigeria has raised concerns about the potential loss of 500,000 jobs as a result of this ban, urging regulators to reconsider their decision and engage in dialogue with industry stakeholders. In a recent interview on CNBC Africa, Segun Ajayi-Kadir, the Director General of the Association, highlighted the negative impact of the ban and called for a more collaborative approach to address the issue. Ajayi-Kadir expressed his reservations about the ban, emphasizing that the manufacturing sector in Nigeria is already struggling with low capacity utilization, high inflation, and a challenging business environment. He noted that the ban on alcoholic sachets and pet bottle drinks could further exacerbate these challenges, leading to job losses and economic hardships for many businesses in the sector. The Director General highlighted the significant investments made by manufacturers in the production of these products and the positive socioeconomic contributions they make to the Nigerian economy. Speaking on the need for dialogue and alternative solutions, Ajayi-Kadir proposed a reversal of the ban and a comprehensive discussion between NAFDAC and industry players to find a balance between regulatory objectives and business interests. He emphasized that asset control and sustainable practices could be more effective in addressing concerns around underage alcohol consumption, rather than a blanket ban that disrupts businesses and threatens livelihoods. Despite the concerns raised by the Manufacturers Association of Nigeria, the future of the ban remains uncertain. Ajayi-Kadir expressed hope for constructive engagement with regulatory authorities to explore viable alternatives and mitigate the negative impact on the manufacturing sector. He called for a collaborative approach that considers the interests of all stakeholders involved, including the Nigerian people, businesses, and the broader economy. In addition to discussing the ban on alcoholic sachets and pet bottle drinks, Ajayi-Kadir also shared his condolences for the late Chief Executive Officer of Access Holdings, highlighting the significant contributions of the business leader to the financial sector in Africa. He described the loss as a setback for the continent and emphasized the need to preserve the legacy of the late CEO in advancing financial integration and economic development across Africa. As Nigeria grapples with the implications of the ban on sachet alcohol drinks, the calls for dialogue, collaboration, and strategic decision-making are more important than ever. The manufacturing sector faces a critical juncture, with the livelihoods of thousands at stake. It is imperative for regulators and industry stakeholders to work together towards sustainable solutions that balance regulatory objectives with economic realities, ensuring a win-win outcome for all involved.