SACHET ALCOHOL BAN MAY WIPE OUT N400BN INVESTMENTS — NECA, MAN WARN

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Micah Jonah
February 3, 2026

The Manufacturers Association of Nigeria and the Nigeria Employers’ Consultative Association have warned that enforcing a ban on alcoholic beverages packaged in sachets and small PET bottles could destroy investments valued at over N400bn across the alcoholic beverages value chain.

In a joint position made public on Monday, the Director General of NECA, Adewale Oyerinde, and the Director General of MAN, Segun Ajayi Kadir, cautioned that the renewed enforcement drive by the National Agency for Food and Drug Administration and Control could have severe economic consequences if implemented abruptly.

According to the Associations, the wines and spirits industry supports hundreds of thousands of direct and indirect jobs spanning manufacturing, packaging, logistics, agriculture, retail and hospitality. They noted that investments tied specifically to sachet and small PET alcohol production lines, packaging technology and distribution infrastructure alone exceed N400bn.

They further disclosed that the broader wines, spirits and beverages sector generated over N2tn in combined production and distribution revenue in 2024, contributing significantly to excise duties, tax revenues and industrial activity within key manufacturing clusters.

NECA and MAN expressed concern that factory shutdowns, product seizures and sudden compliance demands could erode investor confidence, worsen unemployment and push legitimate businesses into informal and unregulated markets where taxes and labour protections are absent.

While reaffirming their support for responsible regulation, public health protection and the prevention of underage drinking, the Associations insisted that regulatory actions must be evidence based, proportionate and consistent. They argued that banning sachet alcohol produced by duly registered companies would not address alcohol abuse but instead encourage the spread of unregulated and potentially dangerous alternatives.

The groups also faulted what they described as regulatory inconsistency, pointing out that the Office of the Secretary to the Government of the Federation had earlier directed a suspension of the ban to allow further stakeholder engagement, while the House of Representatives had similarly called for restraint.

They warned that proceeding with enforcement despite these directives undermines confidence in Nigeria’s regulatory framework and weakens trust between government, regulators and the private sector.

NECA and MAN called for the immediate suspension of enforcement actions, urged regulators to prioritize access control, public awareness campaigns and strict age verification at points of sale. They also demanded the publication of clear scientific risk assessments specific to sachet alcohol products.

The Associations emphasized that affected products were previously tested, registered and approved by NAFDAC in line with established technical standards, adding that sachet packaging reflects Nigeria’s socio economic realities by providing regulated options for adult consumers with limited purchasing power.

They concluded by urging the Federal Government to adopt science driven and data informed policies that protect minors, sustain investments, preserve jobs and promote long term economic development.

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