FG urged to protect $500m energy drink business

The Federal Government has been urged to protect Nigeria’s $500 million local energy drink business from foreign competition.

According to local producers, the government should protect newly established industries from foreign competition, and save direct employment of over 2,000 Nigerians and their numerous dependents.

The local producers said they have the capacity to produce enough drinks that can serve the entire country.

“From the time of the last review of the import prohibition list, over 10 brands have invested in the local production of energy or health drinks. As of date, total investment is over $500m, says Ayodele Joseph, director-general, Africa Brands Group.

They urged the government to safeguard the health of Nigerians from compromised formulation of imported energy and health drinks. He said most of the imported energy or health drinks could not withstand Nigeria’s temperature on storage, and they often busted and constituted a hazard in the open market.

Ayodele said, “There is a need to prevent the dumping of cheap foreign goods in Nigeria.

“Banning the importation of energy or health drinks will lead to more investment in local production, higher capacity utilisation, and a boost for the export drive of the local manufacturers.

“We need to stem the tide of Nigerian companies relocating to neighbouring countries due to the seemingly hostile production environment. Nigeria needs to protect the high investment and employment opportunities in all associated companies e.g. Can and corrugated cartons industry.”

The local producers sought urgent actions to prevent the collapse of over $500m investments in the local industries involved in the production of energy/ health drinks.