Ban on Alcoholic Beverages in Sachets, Pet Bottles impact Manufacturers, Workers, Citizenry, Economy- DG MAN
- Stakeholders advocate for access control and tighter regulations
The Manufacturers Association of Nigeria (MAN) has expressed concern about the recent ban imposed on spirit drinks in sachets and PET bottles less than 200ml by National Agency for Food and Drug Administration and Control (NAFDAC), stressing that more disturbing is the fact that adequate consideration was not given to the impact such move will have on the manufacturers, the workers, the citizenry and the economy.
Mr Segun Ajayi-Kadir, mni, Director General, Manufacturers Association of Nigeria (MAN), gave the submission in a speech at the press conference on the enforcement of ban on production of alcoholic beverages in sachets and less than 200ML pet bottles held at the MAN Corporate Office in Lagos on Friday 9, February 2024.
Ajayi-Kadir highlighted the National Agency for Food and Drug Administration and Control (NAFDAC) recently want to enforce an issue that has lingered since 2018 when the agency raised a concern, which the players addressed through research and campaign.
He hinted that notwithstanding its earlier objections (to the immediacy of the ban), Distillers and Blenders Association of Nigeria (DIBAN) participated in the preparation of a Memorandum of Understanding (MOU) which was then signed (with evident reservations) on the 18th of December 2018 between the Federal Ministry of Health, NAFDAC, CPC (now FCCPC) and Association of Food, Beverages, and Tobacco Employers (AFBTE) and Distillers and Blenders Association of Nigeria (DIBAN) to address the concerns raised at the time.
He explained that the goal was to enlighten citizen on responsible consumption, by supporting the Federal Ministry of Health and NAFDAC to undertake the advocacy, messaging, training and education of the public, adding that during this period DIBAN spent over one billion naira (N1, 000,000,000) (as at December 2023) on various campaigns to ensure zero consumption of alcoholic beverages by the under aged and in promoting responsible use of alcoholic beverages among adults.
The campaigns, he said involved heavy use of radio, billboards, and social media to propagate the Ministry of Health’s carefully crafted messages which were designed to cause a behavioral change in consumers.
DG MAN elucidated that working with NAFDAC, the players targeted young people below the age of 18 years who are not allowed by law to drink alcohol at all, and even the adults who are allowed to drink must drink responsibly, stressing that adverts on radio and television were moved to late hours to prevent young people from being influenced.
“Furthermore strategic moves were made to identify factors that affect irresponsible consumption of alcoholic beverages; identify factors responsible for underage drinking in Nigeria; to implement strategies guided by best global practices and national priorities towards strengthening regulatory activities (e.g. access control); to strengthen implementation structures through effective collaboration to ensure sustainability; and to generate evidence through effective monitoring and evaluation for learning and accountability.
“NAFDAC, as part of getting the true position on the matter engaged an independent research Agency – Research Data Solution Limited. The Agency submitted its report to NAFDAC on August 20, 2021. The report recommended Access Control by the regulator rather than outright ban; given the fact that only 3.9% of underage are engaged in binge drinking. This therefore confirms the fact that involvement of underage in alcoholic consumption is low and could, with additional efforts, be eradicated. This is an objective our members are irrevocably committed to.
“Despite the show of corporate responsibility and proactive support by the players to eliminate the root cause of the issue, the Association is perturbed at the apparent preoccupation of NAFDAC to ban the production of drinks in sachets and PET bottles by 2024. This is at variance with the right of private entrepreneurs to invest and engage in legitimate business.
“Besides and more importantly, the proposed policy would amount to unnecessary and avoidable debilitation of the business of local and indigenous investors who through thick and thin have kept faith with the Nigerian Economy. They have continued to invest and reinvest at enormous cost in the economy and in the Nigerian people who are the bulk of its nearly Five Hundred thousand (N500, 000) people workforce. This is in spite of the daunting challenges that businesses have faced in the difficult times, which if we must emphasize, has led to several companies closing down and foreign investors leaving the Country. We are convinced that this present administration’s Renewed Hope Agenda will not be best served with this ban. If the administration is committed to encouraging and strengthening local investors, then this ban should give way to access control” , DG MAN said.
Ajayi-Kadir stated further that at least, one would expect that NAFDAC should allow due process of full legislative hearings by the appropriate House Committee to take place, so that relevant stakeholders can engage and the public will know the factual, expert and well-informed opinions.
He also mulled that the Ministerial Technical Committee should be allowed to complete its work, adding that the industries have invested hundreds of billions of naira not only in the business, but overtime, in packaging and distribution, while most of the huge investments are backed by enormous indebtedness to both foreign and local financial institutions
He pointed out that prior to the investment made by the companies, in the packaging, distribution, logistics and advertisement of their products, the necessary approvals were obtained thus prompting them to make the said investments.
According to the DG MAN “This is what the ban is going to wreck for no justifiable reason. It must be explicitly stated: Moderation and responsible drinking promote good health. SMALL is good, if you buy small you will consume small. If you buy big you will consume big, this is not HEALTHY. Bigger sizes encourage consumption of bigger portions, while small sizes encourage portion control. If you take away small sizes, you are encouraging excessive consumption of alcoholic beverages. To go ahead with the policy based on perceived danger, without empirical information and not minding the consequences, is unfair to the industry operators, the thousands of workers that will lose their jobs and inimical to Nigerian economy.”
The DG MAN called on the government to carry out the following:
- Intensify its activities and support in the form of access control and tighter regulations, but definitely not ban, which will be counterproductive;
- That the ban be reversed immediately and replaced with regulations and access control such as: a) Establishment of licensed liquor stores/outlets by LGAs across the country; b) Suspected underage persons (under 18) should be required to show I.D to purchase alcoholic beverages as practiced in some other climes; c) Tighten enforcement by law enforcement agencies. d) Increased monitoring and compliance checks by NAFDAC, FCCPC and others to ensure strict product quality in terms of content and safety.
- Encourage collaborative effort to eliminate underage drinking or use of alcoholic beverages;
- Enforce better regulations backed by informed policy and not a general ban on the production and sales of drinks in sachet and PET bottles; C. The sale of Alcoholic Beverages should be restricted to On-license and Off-license shops and ALGON should be strengthened to oversee the process;
- Promote and protect the growth of local industries and jobs, tackling of fake, counterfeit, and unwholesome alcoholic beverages.
Speakers at the conference include: CEO Intercontinental Distillers, Chief Engr Patrick Anegbe, CEO Stellar Beverage, Gandhi Anandan, CEO of Grand oak industries, Mr Wale Majaolagbe and Executive Secretary, Distillers and Blenders Association of Nigeria (DIBAN) Mr John Ichue.
