MAN asks senate to halt plan to ban sachet alcohol, says N1.9trn investments at risk

The Manufacturers Association of Nigeria (MAN) says the ban of sachet alcohol could lead to loss of over N1.9 trillion investments and the rise in illicit drinks.

In a statement on Wednesday, Segun Ajayi-Kadir, director-general of MAN, urged the senate to withdraw directives banning the production and sale of alcoholic drinks in sachets and small PET bottles by December 31, 2025.

He said the directive contradicts earlier progressive alternatives agreed upon by all stakeholders.

The senate had asked the National Agency for Food and Drug Administration and Control (NAFDAC) not to extend the deadline for phasing out alcoholic beverages packaged in sachets beyond December 2025.

Asuquo Ekpenyong, senator representing Cross River south, said the products are easily accessible, affordable and widely consumed by children, adolescents, commercial drivers and other vulnerable groups.

However, Ajayi-Kadir said several independent government-backed studies had disproved claims that minors were abusing the products.

He added that despite the findings, manufacturers had continued to support public campaigns promoting responsible drinking and discouraging underage consumption.

Ajayi-Kadir warned that the move could trigger severe economic disruptions, describing it as counterproductive.

“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 for the following reasons: loss of over N1.9 trillion investment, largely by the indigenous Nigerian companies,” the statement reads.

“Consequential mass retrenchment of over 500,000 direct employees and approximately 5 million indirect through contracts, marketing, and other logistics.

“Reduction in capacity utilization in manufacturing, which in recent quarters began to gradually improve on account of the industry’s contribution as a component of the food and beverages sector; and loss of indigenous businesses that may gradually obliterate local entrepreneurship development in the economy.

“It is equally important to note that the alcohol served in sachets by local producers are produced under hygienic conditions and certified by our regulatory agencies.

“To ban the product would open a floodgate of illicit and unwholesome substances that are not subject to regulation and beyond the control of the relevant agencies.”

‘STOP NAFDAC FROM ENFORCING BAN’

The DG said the directive would effectively open up the market to an influx of foreign brands, many of which are smuggled, posing potential health risks while sidelining local manufacturers and depriving the government of revenue.

“We therefore make a stringent appeal for an expedited endorsement and implementation of the validated Nigeria National Alcohol Policy and its multi-sectoral implementation framework,” Ajayi-Kadir said.

“We urge the senate to rescind the order on the ban on the sale of alcoholic beverages in sachets and for NAFDAC to be restrained from implementing the ban from December 31, 2025.”

The DG reaffirmed the association’s commitment to working closely with its members producing sachet alcohol to comply with regulations and uphold responsible consumption campaigns.