The Distillers and Blenders Association of Nigeria (DIBAN) has issued a stark warning about the potential economic consequences of the ban on the production and sale of sachet and PET bottle alcohol by the National Agency for Food and Drug Administration and Control (NAFDAC).
In an open letter addressed to President Bola Tinubu, DIBAN, a sub-sector under the Manufacturers Association of Nigeria (MAN), highlighted that investments worth over N1.2 trillion are at risk, and approximately 5.5 million direct and indirect workers could lose their jobs if the ban is not lifted.
The ban, which came into effect on January 31, 2024, was imposed due to concerns about the packaging of alcoholic beverages in sachets and PET bottles, which was believed to contribute to increased alcohol use among underage individuals and be linked to the use of hard drugs.
However, DIBAN strongly refuted these claims, arguing that there is no legal or moral justification for an outright ban. The association asserted that alcoholic beverages in sachets and PET bottles are not produced with hard drugs, and there is no evidence from the National Drug Law Enforcement Agency supporting these allegations.
DIBAN, representing over 24 corporate organizations involved in the production and manufacturing of wines and spirits, emphasized its substantial contributions to the Nigerian economy, with total investments exceeding N500 billion. The association also highlighted its role in providing direct employment to over 500,000 people and indirect employment for more than 5 million.
In its plea to President Tinubu, DIBAN requested the issuance of a directive or Executive Order lifting the ban. The association proposed alternative measures, such as establishing licensed liquor stores/outlets by Local Government Areas across Nigeria.
DIBAN suggested that increased monitoring and compliance checks by regulatory agencies could ensure product quality, rather than implementing an outright ban.
If the ban is not lifted, DIBAN warned of severe economic repercussions, including the loss of investments, jobs, and substantial revenue streams for both the Federal and State Governments. The association urged a reconsideration of the ban to prevent such adverse effects on the economy.
The ban, which has faced opposition, including disputes from MAN regarding claims of member support, remains a contentious issue with significant implications for Nigeria’s economy.
Nairametrics