The Nigeria Employers' Consultative Association (NECA) has strongly criticized the federal government's prohibition on the sale of alcoholic beverages in sachets and small bottles. The association warns that this policy could have severe unintended consequences, including a surge in smuggling activities and significant job losses across the nation.
NECA Director-General Highlights Economic Dangers
Mr. Wale Smatt-Oyerinde, the Director-General of NECA, presented the association's firm stance during a media briefing held on Tuesday in Lagos. He argued that imposing a blanket ban is not the correct approach to addressing the societal concerns linked to these products.
Smatt-Oyerinde pointed to Nigeria's extensive and porous borders, with over 1,000 unmanned entry and exit points, as a major vulnerability. He stated that such a ban would primarily create lucrative opportunities for smugglers to bring in similar products illegally, undermining the policy's intent and depriving the government of revenue.
Risks to Livelihoods and Investments
The NECA boss expressed deep concern over the potential economic fallout. He emphasized that the ban threatens the entire value chain connected to the production and sale of sachet alcohol. This includes manufacturers, distributors, retailers, and ancillary service providers.
"Looking at the overall economic objectives, where do you throw the jobs that would be lost in that place?" Smatt-Oyerinde questioned. He challenged the government to consider strengthening social institutions like the school system instead of resorting to prohibitive measures.
He further elaborated on the broader message such a ban sends, stating, "We are not worried about the rate of unemployment. We're not worried about the business investment that will be lost. We're not worried about the consequences of the message we are communicating to other investors." This sarcastic remark underscored his belief that the policy disregards critical economic realities.
Call for Collaborative Solutions and 2025 Review
Smatt-Oyerinde urged the government to adopt a more inclusive approach. He called for wider engagement with all relevant stakeholders, including business owners and consumers, to develop mutually acceptable solutions that address public health concerns without crippling businesses.
The Director-General also used the occasion to reflect on the year 2025 for the association. He noted it was an eventful period marked by collaboration with various government agencies to improve Nigeria's business climate. He acknowledged that the current administration's economic reforms had contributed to macroeconomic stability in 2025.
Expressing optimism, Smatt-Oyerinde said he hoped the recorded gains would lead to better microeconomic conditions for ordinary Nigerians in 2026. He pledged that NECA and organized labour would continue to work together to bridge existing gaps and disparities.
"We will consolidate on the foundation of fiscal industrialisation that already existed, and continue to engage the government in the context of an environment that will make this country much more profitable, not only for those in government, but also for Nigerians," he concluded.
