Nigeria’s ban on the production and sale of alcoholic beverages in sachets and small bottles has triggered strong warnings from industry groups and business chambers about severe economic fallout, including massive investment losses and widespread job cuts.
Manufacturers and business leaders say the policy, enforced by the National Agency for Food and Drug Administration and Control (NAFDAC), threatens to undo significant progress in Nigeria’s manufacturing sector and unsettle investor confidence.
The Manufacturers Association of Nigeria (MAN) has raised the alarm that the ban could wipe out about ₦1.9 trillion in investment tied up in the production, packaging, and distribution of sachet alcoholic drinks, largely by indigenous companies.
The association also warned that over 500,000 direct jobs could be lost, with up to five million indirect jobs across logistics, marketing, and related supply chains jeopardised if enforcement proceeds without transition measures.
The Abuja Chamber of Commerce and Industry (ACCI) has also voiced concern that renewed enforcement of the ban could wipe out about ₦800 billion in investments tied to the sachet alcohol value chain.
Chief Emeka Obegolu, ACCI President, described the policy rollout as “economically disruptive,” stressing that Nigeria needs regulatory consistency to sustain growth and protect livelihoods.
Obegolu noted that the action clashes with earlier government directives, including a December 2025 suspension and a House of Representatives resolution calling for broader stakeholder engagement, and warned that a sudden ban could undermine investor confidence at a time when stability is crucial.
Industry leaders argue that the ban risks reducing capacity utilisation in manufacturing — a sector already showing signs of gradual recovery — and could erode local entrepreneurship as small producers are edged out of the market.
Critics have also pointed to the potential for a spike in illicit and unregulated alcohol products, which could undercut both consumer safety and government tax revenues.
Both MAN and ACCI are urging authorities to delay full implementation of the ban and pursue a more inclusive, phased approach that allows manufacturers to restructure operations and meet public health objectives without triggering economic shockwaves.
ACCI has proposed establishing a multi‑stakeholder implementation committee to harmonise regulatory goals with economic sustainability, while MAN has restated support for strengthened regulation rather than outright prohibition.
