The Manufacturers Association of Nigeria (MAN) has cautioned that the planned ban by the National Agency for Food and Drug Administration and Control (NAFDAC) on the production and sale of alcoholic beverages in sachets and small PET bottles could have devastating economic consequences.
According to the Association, the policy—scheduled to take effect on December 31, 2025—could result in the loss of over ₦1.9 trillion worth of investments and threaten the livelihoods of more than five million Nigerians, including both direct and indirect workers across the country’s manufacturing value chain.
In a statement issued in Lagos, Segun Ajayi-Kadir, Director General of MAN, described the ban as “economically reckless and procedurally flawed,” warning that it would cripple indigenous enterprises that have invested heavily in the segment and undo years of industrial progress in Nigeria’s beverages sector.
Lack of Consultation and Policy Inconsistency
Ajayi-Kadir criticized both the Senate and NAFDAC for what he called a hasty and unilateral decision, noting that the Senate’s November 6 resolution contradicts the consensus reached among key stakeholders during the validation of the National Alcohol Policy held in October 2025.
He explained that the validated policy had recommended a multi-sectoral approach—not an outright ban—to tackle alcohol abuse while preserving legitimate business operations. The plan included tighter enforcement of existing regulations, licensing of retail liquor outlets, and sustained public education on the risks of excessive drinking, especially among minors.
“During the policy validation process, stakeholders agreed on a national framework that balances public health priorities with economic realities,” Ajayi-Kadir said. “The Senate’s recent resolution disregards that consensus and undermines confidence in regulatory consistency.”
He added that the industry had anticipated a one-year transition period for full implementation of the policy, not an immediate cessation that would destabilize manufacturing operations and supply chains.
Threat to Jobs and Industrial Output
MAN warned that enforcing the ban could reverse the fragile recovery currently seen in the manufacturing sector, which has been gradually improving amid challenging economic conditions.
“The pronouncement will have serious consequences for the now stabilizing economy,” the statement said. “It threatens over ₦1.9 trillion in investments—mostly from local companies—could trigger mass retrenchment of more than 500,000 direct employees and an additional five million indirect workers, and reduce capacity utilization in a sector that is finally showing signs of rebound.”
Ajayi-Kadir noted that sachet and small-bottle packaging were introduced as affordable innovations for low-income adult consumers, allowing responsible consumption in controlled portions. Eliminating them, he warned, would remove a viable product category without addressing the root causes of misuse.
Risk of Illicit Trade and Consumer Harm
MAN also expressed concern that a blanket ban could fuel the growth of illicit and unregulated alcohol markets, exposing consumers to dangerous, unverified products.
“The alcoholic beverages produced by regulated local manufacturers are NAFDAC-certified and meet established safety standards,” Ajayi-Kadir explained. “Once legitimate products are banned, consumers will turn to unsafe alternatives that operate outside any regulatory oversight.”
He warned that such a scenario would not only endanger public health but also deprive the government of valuable tax revenue and worsen Nigeria’s trade imbalance, as smuggled foreign brands fill the void created by the ban.
A Call for Balanced Regulation
Rather than imposing a prohibition, MAN urged both the Senate and NAFDAC to revisit the validated National Alcohol Policy and implement its structured recommendations. These include stricter enforcement, responsible advertising, public awareness campaigns, and community-level education.
Ajayi-Kadir emphasized that the industry remains committed to promoting responsible consumption, revealing that manufacturers have collectively invested over ₦1 billion in national campaigns against underage drinking and alcohol misuse.
“The ban will not solve the problem—it will only destroy legitimate businesses and push the trade underground,” he said. “What Nigeria needs is smart regulation, not prohibition.”
Background
NAFDAC’s Director General, Professor Mojisola Adeyeye, had earlier announced that the agency would enforce a total ban on alcoholic beverages packaged in sachets and small bottles below 200 millilitres by December 2025. She cited concerns about the accessibility of such drinks to minors and commercial drivers, as well as rising cases of addiction and health-related incidents.
However, industry stakeholders argue that the agency’s approach disregards the economic realities of local producers and consumers. As the debate intensifies, the coming months will determine whether Nigeria chooses a path of balanced reform—or faces the fallout of an abrupt policy shift that could reshape its manufacturing landscape.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
