Ban on PET bottles and sachet spirits jeopardizes N800 billion in investments – MAN
The Manufacturers Association of Nigeria (MAN) stated that over .N800 billion in investments are at risk as a result of the prohibition on the manufacture and distribution of alcoholic beverages in PET bottles and sachets.
This was revealed at a press conference that MAN hosted in Lagos on Friday to discuss the ramifications of the prohibition.
Over 5.5 million direct and indirect employment are at stake as a result of the 25 corporations’ investments, according to MAN.
Recall that on February 5, 2024, the National Agency for Foods and Drugs Administration and Control (NAFDAC) prohibited the production and distribution of alcoholic beverages in PET bottles with a capacity of less than 200 milliliters and sachets.
The Distillers and Blenders Association of Nigeria (DIBAN) held a press conference where Mr. John Ichue revealed the information, saying, “25 companies are affected, with an investment outlay of over N800 billion.”Bank loans accounted for the majority of the funds. Additionally, a lot of the businesses have stocks that are good for longer than two years.
“It is important to know that the industries have invested hundreds of billions of naira not only in the business but over time in packaging and distribution,” Director General of MAN Segun Ajayi-Kadir said earlier in his remarks. The majority of these massive investments are supported by massive debt to local and international financial institutions. Additionally, keep in mind that before the companies’ involvement, It should be remembered that the corporations received the required approvals before investing in the packaging, distribution, logistics, and advertising of their products, which is what led them to make those investments in the first place.
“This is what the ban will destroy, and it’s not even justified.”
“The proposed policy would amount to unnecessary and avoidable debilitation of the business of local and indigenous investors who have stuck with the Nigerian economy through thick and thin,” the MAN DG continued.”By the time you factor in the workforce involved in the value chain of packaging and distribution of these products, the total direct and indirect jobs that would be threatened by the ban are more than 5.5 million,” the statement reads. “They have continued to invest and reinvest at enormous cost in the economy and in the Nigerian people who make up the bulk of its nearly 500,000 direct workforce.
“This is despite the enormous obstacles that companies have encountered during these hard times, which, it is important to note, have resulted in the closure of numerous businesses and the departure of foreign investors from the nation.”
“It must be explicitly stated that moderation and responsible drinking promote good health,” Ajayi-Kadir continued. tiny is beneficial; you will consume tiny if you make small purchases. Large purchases will result in large consumption, which is unhealthy. While smaller sizes promote portion control, larger sizes encourage the consumption of larger portions. “You are encouraging excessive alcohol consumption if you take away small sizes.”It is unjust to the industry operators, the consumers, and the government to implement the legislation based only on perceived danger, without supporting data and without considering the ramifications.
“It is unfair to the industry operators, the thousands of workers who will lose their jobs, and detrimental to the Nigerian economy to proceed with the policy based on perceived danger, without empirical information and without concerning the consequences.”
