The Manufacturers Association of Nigeria (MAN) and the Nigeria Employers’ Consultative Association (NECA) have warned that a ban on alcoholic beverages packaged in sachets and small PET bottles could wipe out over N400 billion investments across the alcoholic beverages value chain.
In an article jointly signed by the Director-general of MAN, Segun Ajayi-Kadir and the Director-general of NECA, Adewale Oyerinde, the organisations warned of dire economic consequences following sustained campaigns by the National Agency for Food and Drug Administration and Control (NAFDAC) to ban the production and sale of sachet alcohol across the country.
They said the wines and spirits value chain supports hundreds of thousands of direct and indirect jobs and significant investments in manufacturing, packaging, logistics, and agriculture.
Both private sector leaders warned that abrupt regulatory actions, referring to NAFDAC’s ban, risk deepening unemployment and expanding informal and unregulated markets.
“Research from the Food and Beverage Division of NECA and MAN shows that the sector directly and indirectly supports more than five hundred thousand jobs.
“These jobs span manufacturing plant workers, quality control technicians, distribution personnel, logistics drivers, warehouse and botanicals, and providers of packaging materials such as glass and staff, retail operators, hospitality employees, and farmers supplying grains and plastics. Investments linked to production lines, packaging technology, and logistics tailored to sachet and small PET formats alone are estimated to exceed N400bn,” a section of the article read.
They noted that the combined value of production, distribution, and allied services in the wines, spirits, and broader beverages sector exceeded N2tn in revenue in 2024. They added that the alcoholic drinks sector “contributes materially to national excise and tax receipts, economic activity in manufacturing clusters, and local market vibrancy.”
NECA and MAN noted that enforcement actions such as factory shutdowns, product seizures, and abrupt compliance demands, undermine investor confidence and threaten formal employment.
They said, “Needless disruptive enforcement actions like factory shutdowns, output losses, product seizures, and abrupt compliance demands undermine investor confidence and risk hollowing out formal employment, pushing economic activity into informal and unregulated sectors where tax contributions and worker protections are absent.”
Oyerinde and Ajayi-Kadir stressed that the groups they led were not opposed to regulation and recognised the importance of protecting public health and preventing underage drinking, stating “To be clear, both organisations are committed to and recognise the importance of protecting public health and preventing underage drinking in any form”.
They insisted, however, that regulation must be evidence-based, proportionate, and coherent.
They argued that the ban on sachet alcohol produced by duly registered companies would not curb alcohol abuse or underage consumption, stating, “The ban on alcoholic beverages in sachet, produced by duly registered and regulated companies in Nigeria, will not address the problem of alcohol abuse and consumption by minors.
“It will only open the floodgates for unregulated, smuggled and unwholesome variants, while at the same time, lead to job losses, loss of investment, loss of government revenues, value chain disruption and decimation of livelihoods.”
Meanwhile, MAN and NECA faulted what they described as regulatory inconsistency, noting that the Office of the Secretary to the Government of the Federation directed a suspension of the ban on December 15, 2025, to allow further stakeholder engagement, while the House of Representatives had earlier called for restraint after a public hearing.
They warned that proceeding with enforcement despite these directives undermined confidence in Nigeria’s regulatory environment.
They said, “This regulatory inconsistency has left operators, investors, and workers uncertain about the rule of law. It undermines confidence in Nigeria’s regulatory environment, discourages investment, and erodes trust between government, regulators, and the private sector.”
Both groups called for the immediate suspension of enforcement in line with Federal Government directives. They urged regulators to focus on access control, public enlightenment, and retail-level enforcement rather than packaging formats.
They also demanded the publication of scientific risk assessments specific to sachet alcohol and stronger enforcement of age verification at points of sale.
Oyerinde and Ajayi-Kadir emphasised that sachet and small PET products had been tested, registered, and approved by NAFDAC, with alcohol by volume levels consistent with global standards.
“All alcoholic products now affected by the ban were previously tested, registered, and approved by NAFDAC following established technical protocols… To categorise such products as inherently dangerous without presenting new and detailed scientific evidence creates a fundamental inconsistency,” they added.
They added that sachet packaging reflected Nigeria’s socio-economic realities by allowing adult consumers with low or irregular incomes to access regulated products, warning that eliminating such options could drive consumers to unsafe, illicit alternatives.
The associations further argued that enforcement resources should prioritise illicit drugs and unregistered alcohol products, noting rising cases of drug abuse among youths.
“Nigeria deserves regulations that are science-based, data-driven and fit for the Nigerian environment… NECA and MAN remain committed to working with government and regulators to develop a balanced, data-driven policy framework that protects minors, supports investment, and promotes national economic development and job creation,” the duo added.
