Ban on small sachet beverages, act of economic sabotage — NECA

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The Nigeria Employers’ Consultative Association (NECA), the umbrella body for employers in Nigeria, yesterday, raised the alarm over the unintended consequences of the ban on the production of drinks in sachets and small-sized bottles by the National Agency for Food and Drug Administration and Control (NAFDAC).

The Association, in its reaction equated the ban to economic sabotage and an attempt to further drag businesses in the sector into economic abyss.

Speaking in Lagos, the Director-General of the Association, Adewale-Smatt Oyerinde noted that the recent ban on the production and sale of the products is not only ill-advised, but also ill-timed in view of the current economic situation, the current rate of unemployment, the inability of the Customs to effectively police the borders and the likely loss of investment by  organizations.

“At a time when all economic fundamentals are against organized business with consequential effects on job creation and enterprise sustainability, the ban by NAFDAC will further drag businesses into the precipice and escalate the current rate of unemployment in the country. In a country where there are many unguarded entry points, this will also promote smuggling as unscrupulous elements will leverage on this ban to flood the market with dangerous adulterated products,” he said.

While reiterating the Association’s opposition to the action, the NECA boss said the Beverage and Alcoholic industry is a major provider of employment and a significant contributor to Government tax revenue.

While noting that it is important to control the abuse of alcoholic drinks in the country, he said it is of greater importance to ensure business sustainability, employment creation and poverty reduction among households