Ban on styrofoam, satchet alcohol to worsen employment – NECA

Bisola David
Bisola David
Ban on styrofoam, satchet alcohol to worsen employment - NECA

The Nigeria Employers Consultative Association is concerned that employment losses in the real economy may result from the recent prohibition on the manufacture and distribution of polystyrene food packs and sachet alcohol.

According to the PUNCH, The Nigeria Employers’ Consultative Association’s Director-General, Adewale-Smatt Oyerinde, stated in an interview that the prohibition on these goods will potentially have an impact on the country’s already precarious economy.

He issued a warning, stating that among other things, the effects of widespread job losses will continue to pose problems with instability and a rise in child labour.

Oyerinde declared, “This has terrible ramifications for labour, government revenue, households, and organised enterprises alike.

The effects of these widespread job losses will exacerbate issues with insecurity, raise the rate of child labour, negatively impact families’ disposable income, erode people’s purchasing power, and significantly lower economic output.”

Speaking further, Oyerinde pointed out that considering the state of the economy, the unemployment rate, and the probable loss of investment by the companies producing those goods, the prohibition on their manufacture and sale was not only misguided but also ill-timed.

In order to prevent the detrimental effects on the economy and society, he urged NAFDAC to lift the prohibition and promoted additional discussion with pertinent organizations, including the National Union of Road Transport Workers, the Distillers Association, and the Road Transport Employers Association of Nigeria.

Following the Lagos State Government’s decision to outlaw the usage and distribution of polystyrene (Styrofoam) and other single-use plastics inside its borders, NAFDAC banned alcohol in sachet and PET bottles.

The Manufacturers Association of Nigeria criticised the decision and issued a warning about the possible job effects the ban may have on the subsector.

The International Labour Organization has predicted that the unemployment rate would rise from 5.1% in 2023 to 5.2% in 2024, which might result in the loss of two million jobs this year.

The ILO said that both the jobs gap and unemployment have decreased from pre-pandemic levels in its most recent report, “World Employment and Social Outlook: Trends 2024,” although global unemployment would rise.

It also stated that rising inequality and sluggish productivity should be taken seriously.

The rate of unemployment worldwide has decreased for three years running, from 6.9% in 2019 to 5.1% in 2023.

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