Ban on sachet alcohol threatens N1.9tr investments, manufacturers warn
The Manufacturers Association of Nigeria has cautioned that the plan to prohibit the production and sale of alcoholic drinks in sachets and small PET bottles by December 31, 2025, may lead to a loss of over N1.9 trillion in investments from local firms.
Moreover, this prohibition could result in the loss of 500,000 direct jobs and 5 million indirect jobs.
This public concern comes after a recent order from the National Agency for Food and Drug Administration and Control to implement a ban on sachet alcoholic beverages by the end of the year. This action by NAFDAC follows a resolution approved by the Senate during its meeting on Thursday, November 6, 2025.
In a statement issued yesterday, Segun Ajayi-Kadir, the Director General of MAN, urged for the ban to be reversed. He pointed out that the issues surrounding the ban had previously been settled by a larger committee involving all relevant stakeholders and NAFDAC representatives, which ultimately endorsed the National Alcohol Policy in October 2025.
Ajayi-Kadir stressed that the main argument regarding the misuse of these products by minors, which has been cited as a reason for the ban, has been debunked by various empirical studies conducted by the government.
The Director General then elaborated on the significant economic impacts of the proposed ban, stating: “This declaration, which we consider counterproductive and likely to lead to substantial economic disruption for the country at this time, will have serious ramifications for the currently stabilizing economy for the following reasons:”
He proceeded to specify the anticipated losses: “A reduction of over N1.9 trillion in investment, primarily from local Nigerian firms; widespread job losses affecting over 500,000 direct workers and around 5 million indirect employees through contracts, marketing, and various logistics;”
Ajayi-Kadir also pointed out the implications for the industrial sector: “Decreased capacity utilization in manufacturing, which had been gradually improving in recent months thanks to the industry’s role within the food and beverages sector; and the disappearance of local businesses that could ultimately undermine the development of entrepreneurship in the economy.”
He additionally cautioned about the repercussions related to foreign market influence, stating: “A ban would effectively hand over the market to the influx of foreign brands, most of which are smuggled. Besides potential quality concerns, this would disadvantage local producers and result in lost revenue for the Government.”
MAN concluded its plea by suggesting an alternative regulatory approach: “We thus strongly appeal for a swift endorsement and execution of the validated Nigeria National Alcohol Policy alongside its multi-sectoral implementation strategy. We believe that this would render the unnecessary ban moot.”
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