The ban on sachet and pet bottles of alcoholic drinks of less than 200ml by the National Agency for Food and Drug Administration and Control (NAFDAC) has continued to generate reactions among retailers, consumers, and low-income earners who depend on these products as a means to generate income.
The reaction has spiralled into protest from manufacturers, distributors, retailers as well as consumers as it affects over 25 beverage companies.
According to medium-scale business owners whose livelihood depends on the sales of these drinks, the decision by NAFDAC at this time is more like it is a deliberate act targeted at the poor masses who are trying to cope with a harsh economy.
They added that banning sachet alcoholic drinks at this crucial time entails a multifaceted analysis of Nigeria’s potential economic ramifications, encompassing both short-term disruptions and long-term implications for various stakeholders within the economy.
Emmanuel, a driver who works in Okota, Lagos said the policy will drastically affect small sellers whose lives depend on the sale of the product.
Titilayo who sells the sachet products in Oshodi told BusinessDay that the ban will affect small businesses like hers. “It will be hard for us”, she said.
It was also argued that the size of these sachet drinks is the reason people drink responsibly like having to buy big bottles and being tempted to drink it all.
Currently the Nigeria economy is challenged due to so many factors, from terrorism to internal and external conflict, government expenditure, and domestic investment and this is not the best time to make harsh decisions that can have a social economic impact on people who are trying to cope with life.
Friday, a resident of Okota reasoned that NAFDAC could have used tax and tariff to control the sale of sachet alcohol rather than outright ban of the products.
The ban on sachet alcoholic drinks intersects with broader socio-economic issues, including poverty, inequality, and public health. While the policy may aim to curb alcohol-related harm, its impact on vulnerable populations, including those dependent on sachet drinks for livelihoods or coping mechanisms, must be carefully considered.
It could be recalled that at the beginning of the year 2024, PwC released a report on the economic trends that shape Nigeria’s Economy and one of the trends stated that the poverty level is projected to increase to 38.8% because purchasing power will remain an issue.
“Business outlook consumer spending may be pressured in 2024 due to rising prices of goods and services (increasing food and transportation costs), coupled with lower disposable income. However, private consumption is expected to be marginally better than in 2023.
Poverty levels are projected to increase to 38.8% in 2024. Despite the high unemployment rate in the country, low consumer spending and purchasing power remain an issue, especially in the absence of a commensurate increase in the minimum wage to mitigate the inflationary growth in the economy.”
Therefore, the decision to phase out the sachet drink at this time has more disadvantages than advantages even though it is a good measure to curb health damage that alcohol causes in the body, other analysts say.
At the last protest organized by the Association of Food, Beverage & Tobacco Employers (AFBTE), it was stated that the outright ban was wrong since sachet drinks were registered food products. The union added that it worried over what will become of the thousands of the workforce who will lose their jobs if the industry is shut down.
According to AFBTE, the total investment of the business is over N800 billion and over 500 million employees will be affected if the government and NAFDAC do not put an end to the ban.
Some respondents argued that not all Nigerians can afford big capital to stock their shops with big bottled spirit drinks that they may not sell in months, so they would rather buy products that will drive sales.
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