Why FG must rethink ban on sachet and pet bottle alcohol

AT the inception of the current regime, President Bola Ahmed Tinubu embarked on extensive trips across the world with the sole aim of attracting Foreign Direct Investment into Nigeria.

And this is because, if the truth must be told, Nigeria’s economy is almost comatose. So, notable amongst the countries visited by Tinubu for investment were India and France.

In India, Tinubu, marketing Nigeria, told the cream of Indian investors: “We are ready to give you the best returns for investment possible, there’s nowhere else like our country. Nigeria offers the best returns for investment today.”

The Indian trip yielded $ 14 billion. Also in France, Tinubu marketed Nigeria, saying, “We are ready for business, prepared to welcome investments.”

This game changing move is already yeilding results. But notwithstanding this positive developments, investors in the past one year have been leaving Nigeria in droves. Unilever, after over a century of operations in Nigeria, stopped production of all its flagship household brands, citing unfavorable economic conditions. Procter and Gamble also shutdown its factories in the country, citing the same reasons. Leading pharmaceutical company, GSK also shutdown its production lines.

This ugly development has led to job losses and dwindling revenue for the government.

It is against this background that the Federal Government must rethink the recent outright ban on sachet and pet bottle alcoholic beverages by the National Agency for Food and Drug Administration Control ( NAFDAC).

At a press conference in Abuja recently, the Director General of NAFDAC, Prof. Mojisola Adeyeye proclaimed outright ban on production and sales of the products effective from February 1, 2024, citing a 2018 agreement signed by Distillers and Blenders Association of Nigeria ( DIBAN).

But in a swift response, DIBAN comprising 25 distillers companies accused NAFDAC of being insensitive in view of the postrate state of Nigeria’s economy.

At a press conference organised by the Manufacturers Association of Nigeria and DIBAN in Lagos on Friday, the distillers revealed the implications of the ban for the current fragile economy. One, the ban means a threat to over 800 billion Naira investment by DIBAN. Two, loss of over 5.5 million direct and indirect employment. Three, loss of revenue in form of taxes and excise duties to the government. And on Pay As You Earn ( PAYE) alone, the government earns almost 100 billion naira yearly. Moreover, the development would further worsen the security situation in the country with rising unemployment.

To me, the NAFDAC ban amounts to double standard. How can Nigerian leaders be junketing all over the world in search of Foreign Direct Investment, yet be maltreating local investors? The question is: which investor will come and invest in a country where indigenous businesses are been maltreated?

Unknown to NAFDAC, its current move portends great danger to the country. The collapse of indigenous wine and spirits industry would be taken over by imported and smuggled brands. Rather than outright ban, NAFDAC should sit down with DIBAN members to design a better way of regulating the production, sales and marketing of alcoholic beverages. Reason: this is not the right time to throw millions of Nigerians who have already been battered by the harsh economic climate and insecurity into the labour market thus facilitating depression and untimely deaths.

Thank God, the National Assembly has already intervened by setting up a committee to look into the genesis of the imbroglio and fashion out a way forward. Meanwhile, while the committee is meeting, NAFDAC should rein in their armour and let DIBAN members continue operating without let or hindrance. For me, that’s the only path to peace.