Sachet Alcohol Ban: NAFDAC Raids Threatening 5,000 Jobs – Labour

Organised labour in Nigeria’s manufacturing sector has warned that the ongoing enforcement of the ban on sachet and small-volume alcoholic beverages by the National Agency for Food and Drug Administration and Control (NAFDAC) could put more than 5,000 direct jobs at risk and worsen the country’s economic and security challenges.

The unions also lamented that the sealing of factories was disrupting the production of legitimate products not covered by the ban and called for an all-stakeholder dialogue.

The warning was issued by the Food, Beverage and Tobacco Senior Staff Association (FOBTOB) and the National Union of Food, Beverage and Tobacco Employees (NUFBTE), which described the closure of affected factories as a setback to the federal government’s industrialisation agenda.

Speaking with LEADERSHIP on Tuesday, NUFBTE president, Comrade Ibrahim Garba, said the timing of the enforcement was particularly unfortunate, given the severe economic hardship confronting businesses and workers.

He warned that shutting down factories could force thousands of workers into unemployment, with serious implications for national security.

“NAFDAC’s action has come at a very difficult period when the harsh economic conditions are already biting everyone. It is going to push more people into the labour market, and idle hands are the workshop of the devil,” Garba said.

He added that the affected companies risked losing substantial investments and export markets across West Africa if the factory closures persist.

“These companies are on the verge of bankruptcy. They are not only losing revenue, but government will also lose taxes and export earnings because many of them supply products to other West African countries,” he stated.

Garba urged the federal government to convene all stakeholders to find a lasting solution instead of allowing the closures to continue.

“I want to appeal to whoever has a hand in this to have a rethink by inviting all stakeholders in the sector for dialogue. The current situation will discourage foreign investors from bringing their investments into Nigeria,” he said.

He further warned that rising unemployment resulting from the factory shutdowns could aggravate insecurity.

“We are already battling insecurity in the country. Any action that throws over 5,000 workers out of their jobs will only compound the problem,” he added.

Factory closures disrupting legitimate production – Adebosin

Also speaking, FOBTOB secretary-general, Comrade Solomon Adebosin, criticised NAFDAC for sealing entire production facilities instead of restricting its enforcement to products covered by the sachet alcohol ban.

According to him, the affected companies manufacture a broad range of beverages, many of which are not subject to the regulatory restriction.

“NAFDAC has not only raided these companies but has also sealed their factories. Workers can no longer access their workplaces and, if this continues, some of these companies may eventually shut down completely, leaving thousands without jobs,” Adebosin said.

He argued that the enforcement was disrupting the production of legitimate products and harming the wider manufacturing sector.

“NAFDAC is throwing away the baby with the bathwater. These companies do not produce only sachet or small-pack alcoholic drinks. They also manufacture larger pack sizes and several non-alcoholic beverages. By sealing the factories, even products that are not affected by the directive can no longer be produced,” he said.

Adebosin said the action sends a negative signal to both local and foreign investors at a time when the government is seeking to stimulate industrial growth.

“Given the current state of the economy, government should be encouraging investors who have committed huge resources to creating jobs and sustaining production, not taking actions that could undermine their investments,” he added.

The unions called on the federal government and NAFDAC to engage manufacturers, workers and other stakeholders to ensure that regulatory objectives are achieved without jeopardising jobs, investments and industrial productivity.