MAN: Renewed ban on sachet alcoholic beverages will hurt economy

The Manufacturers Association of Nigeria (MAN), yesterday, called for restraint on the National Agency for Food, Drug Administration and Control (NAFDAC’s) renewed ban on sachet alcoholic beverages.

MAN said NAFDAC’s activities in this regard are disrupting the businesses of its members in the wines and spirits sector and that the renewed ban is inimical to the profitable operation of the companies concerned.

The Director General, MAN, Segun Ajayi-Kadir, in a statement made available to The Nation, said the agency’s renewed ban on sachet alcoholic beverages, against the Federal Government’s directive “will certainly hurt the Nigerian economy.”

Ajayi-Kadir warned that the action is detrimental to the survival of the concerned indigenous industrial operators as it comes at the expense of the jobs and livelihoods of workers and all those involved in the value chain.

“It (the ban) is counterproductive as it will open up the market for illicit, sub-standard, and unregulated products. It will lead to an influx of imported alternatives, mostly smuggled.

“It will deny the government of revenues collectable from the companies. It will deny adult consumers with low budgets access to the products. The overall effect is that the economy and livelihoods will be negatively impacted,” he cautioned.

According to him, the recent action of NAFDAC is also in direct contradiction of the earlier resolution of the House of Representatives on the matter (vide NAS /10/HR/CT.33/77c of 14th March 2024); wherein the House of Representatives, after an all-inclusive consultation with stakeholders through a Public Hearing, restrained NAFDAC from taking the needless punitive action of banning the production of alcoholic beverages in sachets and PET bottles.

He said rather than abiding by the generally agreed resolution, “NAFDAC bided its time and chose to rely on a resolution of the Senate that was devoid of the usual stakeholders’ engagement.”

Ajayi-Kadir, however, said: “We have since approached the Senate, and we trust that the distinguished members will reconsider after further consultations. This is particularly concerning as operators are now confused as to which directive to follow in the face of multiple directives.”

He pointed out that it was important to reemphasize at this juncture that the advent of the sale of alcohol in sachets and PET bottles was not intended to have a negative impact on Nigerians. Rather, it was an innovation to serve the segment of the adult population with low budgets who desire the product and should have a right of choice.

“The ban would, therefore, deny them the opportunity to exercise that right. In addition, and on the positive side, availability in small portions could also discourage abuse associated with bigger portions,” Ajayi-Kadir stated, in the statement, which was made available to The Nation.

He farther said it was equally important to note that alcohol served in sachets by local producers is produced under hygienic conditions and certified by the nation’s regulatory agencies, which include NAFDAC.

“To ban such products would open the floodgates of illicit and unwholesome substances that are not subject to regulation, are dangerous to health, and are beyond the control of the relevant regulatory agencies,” he pointed out.

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The MAN DG said the Association would like to further place on record that “the untested assertion of abuse by minors as the basis for the ban has been controverted by credible and empirical research that was independently conducted.”

He added that the industry, on its own, has even gone further, notwithstanding the report of the survey, to initiate a series of campaigns in respect of responsible alcohol consumption to discourage underage abuse.

“This has so far cost the operators over N1 billion in advertisements at all levels of media outreach across the federation,” Ajayi-Kadir said, noting, however, that “this has been very impactful in discouraging abuse by underage persons and has deepened the access restriction landscape.”

He also said MAN has always supported measures that remove unsafe products from the market. “We have only maintained that such decisions should be supported by empirical facts and not emotional persuasions or appeals to public sentiments.

“To succumb to these scenarios is a costly mistake, as it compromises jobs and livelihoods and activates other unintended consequences,” he pointed out.

Ajayi-Kadir said MAN, therefore, recommits to working closely with its members engaged in the production of alcoholic beverages in sachets and PET bottles, as well as NAFDAC and other agencies of government, to adhere to all regulations and abide by all standards.

MAN appealed to the Federal Government to prevail on NAFDAC to stop the disruption of its members’ activities and abide by the directive to suspend the implementation of the ban on the production and sale of alcoholic beverages in sachets and PET bottles.