SACHET ALCOHOL BAN MAY WIPE OUT ₦400BN INVESTMENTS, COST THOUSANDS OF JOBS

SACHET ALCOHOL BAN MAY WIPE OUT ₦400BN INVESTMENTS, COST THOUSANDS OF JOBS

Industry groups have warned that enforcing a nationwide ban on alcoholic beverages packaged in sachets and small PET bottles could erase over ₦400 billion in investments and trigger widespread job losses across Nigeria’s alcoholic beverages value chain.

The warning follows renewed enforcement actions against the production and sale of sachet alcohol, which industry stakeholders say threaten manufacturing, packaging, logistics, agriculture, and retail sectors linked to the industry.

According to the groups, the wines and spirits value chain supports more than 500,000 direct and indirect jobs, including factory workers, quality control personnel, distributors, logistics operators, packaging suppliers, hospitality workers, and farmers supplying raw materials.

They noted that investments tied specifically to sachet and small PET alcohol production—covering production lines, packaging technology, and distribution infrastructure—are estimated to exceed ₦400 billion, with the broader beverages sector generating over ₦2 trillion in revenue in 2024.

Concerns Over Enforcement Approach

Industry representatives warned that abrupt regulatory actions such as factory shutdowns, product seizures, and sudden compliance demands could undermine investor confidence, weaken formal employment, and push economic activity into informal and unregulated markets.

They argued that such outcomes would reduce tax contributions, erode worker protections, and expand the circulation of unsafe and illicit alcohol products.

While acknowledging the importance of public health safeguards and preventing underage drinking, the groups stressed that regulation should be evidence-based, proportionate, and consistent. They maintained that banning sachet alcohol produced by duly registered and regulated companies would not address alcohol abuse or underage consumption.

Instead, they warned that the ban could fuel the spread of smuggled, counterfeit, and unregulated alcoholic products, while simultaneously leading to job losses, revenue decline, and value chain disruptions.

Regulatory Consistency and Policy Clarity

The groups also raised concerns over regulatory inconsistency, noting that earlier government directives had called for a suspension of enforcement to allow further stakeholder engagement. Proceeding with enforcement despite these directives, they said, has created uncertainty for operators, investors, and workers.

They warned that such uncertainty weakens confidence in Nigeria’s regulatory environment, discourages investment, and strains trust between regulators and the private sector.

Call for Alternative Measures

Rather than focusing on packaging formats, the groups urged regulators to prioritise access control, public education, and retail-level enforcement, alongside stricter age verification at points of sale. They also called for the publication of clear scientific risk assessments specific to sachet alcohol.

They emphasised that affected products had previously undergone testing, registration, and approval under existing technical standards, arguing that reclassifying them as inherently dangerous without new scientific evidence creates policy inconsistency.

The groups further noted that sachet packaging reflects Nigeria’s socio-economic realities, allowing adult consumers with low or irregular incomes access to regulated products. Removing such options, they warned, could drive consumers toward unsafe alternatives.

They concluded by calling for a science-based, data-driven regulatory framework that protects minors, preserves jobs, supports investment, and promotes sustainable economic growth, while reaffirming their willingness to engage constructively with government and regulators.