Ban on Sachet Alcohol Will Trigger Job Losses, Smuggling — NECA Warns

Ban on Sachet Alcohol Will Trigger Job Losses, Smuggling — NECA Warns

The Nigeria Employers’ Consultative Association (NECA) has cautioned that a blanket ban on sachet alcoholic beverages would amount to economic suicide, warning that such a policy could worsen unemployment, encourage smuggling, and overstretch already burdened security and regulatory agencies.

Speaking with journalists on the ongoing debate over alcohol regulation in Nigeria, NECA’s Director-General, Mr. Smatt-Adewale Oyerinde, said prohibiting the production or sale of sachet alcohol would fail to address the root causes of alcohol abuse, particularly among young people, while inflicting serious economic and security consequences.

Oyerinde questioned the effectiveness of prohibition in a country with porous borders and limited enforcement capacity.

“If children under 18 are consuming alcohol, whose fault is it? Is it the parents, the schools, or the producers? Alcohol is not evil; abuse is the problem. Banning one product while others remain legal will not solve it,” he said.

He disclosed that more than ₦800 billion has been invested in the alcohol and allied industries, which employ thousands of Nigerians directly and indirectly. According to him, a sudden ban would lead to massive job losses, business closures, and loan defaults, further aggravating Nigeria’s unemployment crisis.

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“We seem unconcerned about rising unemployment and the message such policies send to investors. If someone invests a billion dollars today, what assurance do they have that a policy will not abruptly shut down their business in a few years?” Oyerinde asked.

The NECA Director-General warned that scarcity created by a ban would only drive up prices and fuel illegal trade.

“When you ban a product you cannot effectively police, you simply create a thriving market for smugglers,” he noted, adding that unregulated foreign alcohol products had already flooded the market during the recent festive season.

He also argued that banning alcohol consumption in public places would merely shift consumption elsewhere.

“If people cannot drink on the streets, they will drink at home. If not at home, then in their cars. So what exactly have we solved?” he queried.

Oyerinde stressed that agencies such as the Nigeria Police, Customs, and other regulatory bodies would be overwhelmed by the additional burden of enforcing a ban, insisting that policy decisions must consider the broader economic impact.

Rather than imposing a blanket ban, NECA called for targeted and coordinated solutions, including stronger institutions, improved regulation, and innovative enforcement strategies such as random checks and sobriety testing, as practiced in other countries.

“A blanket ban is a lazy approach. What Nigeria needs is thoughtful and dynamic policymaking that tackles abuse, protects young people, and preserves jobs without damaging the wider economy,” he said.

He added that NECA was willing to collaborate with government agencies, including NAFDAC, to develop practical and sustainable solutions to alcohol abuse in Nigeria.

Ban on Sachet Alcohol Will Trigger Job Losses, Smuggling — NECA Warns