Stakeholders Raise Major Concerns Over Ban of Sachet Alcoholic Beverages in Nigeria
Manufacturers and vendors of small-sized alcoholic beverages have voiced their distress over the prohibition enforced by the National Agency for Food and Drug Administration and Control (NAFDAC) on satchet and small pet bottles containing less than 200ml of alcohol.
This ban has elicited concern among various stakeholders, from retailers to consumers, particularly affecting those of modest means who rely on these products for income generation. The decision impacts over two dozen beverage companies, reflecting the substantial negative effect on this segment of the market. A coalition of medium-sized business proprietors, identified as the G-10 Group, who depend on the sale of these miniature alcoholic beverages for their livelihood, argue that NAFDAC’s decision seems particularly harsh on individuals grappling with economic difficulties.
In their public statement, the G-10 Group elaborated on the ban’s broad economic consequences, emphasizing the need for a comprehensive evaluation of its effects on Nigeria’s economy, considering both immediate challenges and long-term outcomes for all involved parties.
They highlighted that the smaller size of these alcoholic drinks promotes responsible consumption as opposed to the temptation of consuming larger quantities available in bigger bottles. They pointed out the existing economic challenges in Nigeria, ranging from terrorism and conflict to governmental spending and domestic investment issues, arguing that this period is inopportune for implementing stringent measures that could exacerbate socio-economic strains on those already struggling.
Austine Kiki, a stakeholder in the beverage industry, connected the ban to wider socio-economic concerns, including poverty, inequality, and public health. He stressed that while the intention behind the policy might be to minimize alcohol-related harm, its adverse effects on vulnerable groups — those relying on these products for economic or coping reasons — should be thoughtfully considered. Kiki referenced a 2024 report by PwC forecasting an uptick in poverty rates to 38.8%, amid static purchasing power, hinting at a tough business climate ahead with increased living costs without corresponding rises in disposable income.
Charles Ugochukwu, a retailer from Abuja dealing in foods and beverages, echoed these sentiments, mentioning that despite a relatively low unemployment rate, consumer spending and purchasing power are anticipated to dwindle, a situation not helped by stagnant wage levels amidst rising inflation.
Ugochukwu further discussed the broader implications of phasing out sachet drinks, noting the health rationale behind the measure but arguing its timing and approach bring more harm than good. He referred to a protest by the Association of Food, Beverage & Tobacco Employers (AFBTE) which criticized the ban as misplaced, highlighting the potential job losses among the hundreds of thousands employed within this sector. According to AFBTE, the industry’s total investment exceeds N800 billion, with a significant workforce at risk should the ban persist.
