The Manufacturers Association of Nigeria has issued a warning that the decision to ban the production and sale of alcoholic beverages packaged in sachets and small PET bottles by December 31, 2025, could result in the loss of over N1.9 trillion in investments by indigenous companies.

Furthermore, the ban could eliminate 500,000 direct and 5 million indirect jobs.

This public outcry follows a recent directive from the National Agency for Food and Drug Administration and Control to enforce a ban on sachet alcoholic beverages by the end of the year. This NAFDAC action is based on a resolution passed by the Senate during its sitting on Thursday, November 6, 2025.

In a statement released yesterday, Segun Ajayi-Kadir, the Director General of MAN, called for the ban to be rescinded. He noted that the issues surrounding the prohibition had previously been resolved by an enlarged committee comprising all relevant stakeholders and NAFDAC representatives, which ultimately validated the National Alcohol Policy in October 2025.

Ajayi-Kadir emphasized that the primary argument regarding the abuse of these products by minors, cited as a consequence of sales in sachets, has been dismissed by several empirical research studies that were independently conducted by the government.

The Director General then outlined the severe economic repercussions of the proposed ban, stating: “This pronouncement, which we believe is counterproductive and forebodes economic dislocation of significant proportions for the nation at this period, will have serious consequences for the now stabilizing economy for the following reasons:”

He continued by detailing the expected losses: “Loss of over N1.9 trillion investment, largely by the indigenous Nigerian companies; consequential mass retrenchment of over 500,000 direct employees and approximately 5 million indirect through contracts, marketing and other logistics;”
Ajayi-Kadir also highlighted the impact on the industrial sector: “Reduction in capacity utilisation in manufacturing, which in recent quarters began to gradually improve on account of the industry’s contribution as a component of the food and beverages sector; and loss of indigenous businesses that may gradually obliterate local entrepreneurship development in the economy.”

He further warned of the consequences related to foreign influx, stating: “A ban would also literally yield the market to the influx of foreign brands, which are mostly smuggled. Apart from possible unwholesomeness, this will be at the expense of excluded domestic producers and loss of revenue for the Government.”

MAN concluded its appeal by proposing an alternative regulatory action: “We therefore make a strident appeal for an expedited endorsement and implementation of the validated Nigeria National Alcohol Policy and its multi-sectoral implementation framework. We believe that this will make the implementation of the unwarranted ban unnecessary.”