MAN warns sachet alcohol ban will hurt N1.9trn investments

Juliet Anine
3 Min Read

The Manufacturers Association of Nigeria has raised fresh concerns over the planned ban on alcoholic drinks sold in sachets and small PET bottles, warning that the move could wipe out more than N1.9 trillion in local investments.

The ban, which is expected to take effect on December 31, 2025, is based on a directive from the National Agency for Food and Drug Administration and Control after a Senate resolution passed on November 6, 2025.

In a statement, MAN Director General, Segun Ajayi-Kadir, said the decision should be withdrawn. He explained that an enlarged committee made up of industry stakeholders and NAFDAC had already resolved the issues earlier in October when the National Alcohol Policy was validated.

He stressed that claims linking sachet alcohol to increased access for underage drinkers had been dismissed by independent research carried out by government agencies.

His words: “This pronouncement, which we believe is counterproductive and forebodes economic dislocation of significant proportions for the nation at this period, will have serious consequences for the now stabilizing economy.”

He added: “Loss of over N1.9 trillion investment, largely by the indigenous Nigerian companies; consequential mass retrenchment of over 500,000 direct employees and approximately 5 million indirect through contracts, marketing and other logistics.”

Ajayi-Kadir also warned that cutting production would weaken capacity utilisation in food and beverage manufacturing, a sector that has only recently begun to show signs of recovery. According to him, the ban could eliminate several local firms and stall the growth of homegrown entrepreneurship.

He said: “A ban would also literally yield the market to the influx of foreign brands, which are mostly smuggled. Apart from possible unwholesomeness, this will be at the expense of excluded domestic producers and loss of revenue for the Government.”

MAN urged the government to approve and implement the validated Nigeria National Alcohol Policy as a better option. Ajayi-Kadir said: “We therefore make a strident appeal for an expedited endorsement and implementation of the validated Nigeria National Alcohol Policy and its multi-sectoral implementation framework. We believe that this will make the implementation of the unwarranted ban unnecessary.”

 

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