The National Agency for Food and Drug Administration and Control (NAFDAC) has banned the production and sale of alcohol in sachet and PET bottle forms. The Distillers and Blenders Association of Nigeria (DIBAN) has warned that this will result in the loss of over N1.2 trillion in investments and the unemployment of 5.5 million direct and indirect workers.
The Distillers and Blenders Association of Nigeria (DIBAN), a division of the Manufacturers Association of Nigeria (MAN), issued this warning to President Bola Tinubu in an open letter.
DIBAN’s argument against the ban
The ban, implemented on January 31, 2024, cited concerns about the packaging of alcoholic beverages in sachets and PET bottles contributing to increased alcohol use among underage individuals and linking it to the use of hard drugs.
However, DIBAN contested these claims, stating that there is no legal or moral justification for an outright ban.
The association argued that alcoholic beverages in sachets and PET bottles are not produced with hard drugs, and there is no evidence from the National Drug Law Enforcement Agency supporting the allegations.
DIBAN, which comprises over 24 corporate organizations involved in the production and manufacturing of wines and spirits, emphasized its significant contributions to the Nigerian economy, estimating its total investment at over N500bn.
It also highlighted its role in providing direct employment to over 500,000 people and indirect employment for more than 5 million.
The association urged President Bola Tinubu to issue a directive or Executive Order lifting the ban and proposed alternative measures, such as establishing licensed liquor stores/outlets by Local Government Areas across Nigeria.
DIBAN suggested increased monitoring and compliance checks by regulatory agencies to ensure product quality rather than an outright ban.
If the ban remains, DIBAN warned of severe economic repercussions, including the loss of investments, jobs, and substantial revenue streams for both the Federal and State Governments.
It urged a reconsideration of the ban to prevent such adverse effects on the economy. The ban, implemented on February 1, 2024, has faced opposition, with MAN disputing the claim that its members supported the decision
