The Association of Food, Beverage and Tobacco Employers (AFBTE) has warned the Federal Government against what it described as excessive taxation, arbitrary levies and weak regulatory engagement, saying the policies are pushing businesses in Nigeria’s food and beverage sector to the brink.
Speaking during the association’s 47th Annual General Meeting held in Lagos, AFBTE President, Chinedum Okereke, said the industry remains a vital driver of Nigeria’s economy due to its contributions to employment, public health and national growth.
Okereke stressed that government policies should strengthen the sector rather than place additional burdens on manufacturers already battling rising production costs, foreign exchange instability and infrastructural challenges.
“The food and beverage sector remains a major player in the Nigerian economy in terms of its criticality to the financial and physical health of the nation, as well as the well-being of the people. Government support is therefore imperative,” he said.
He noted that many companies in the industry are struggling under multiple taxes and charges imposed by government agencies without adequate consultation, warning that the trend could threaten the survival of businesses and weaken investor confidence.
According to him, the relationship between government institutions and private businesses should be anchored on collaboration, fairness and continuous dialogue to create a sustainable business environment.
Okereke also renewed the association’s opposition to the proposed ban on the packaging and sale of alcoholic beverages in sachets and small PET bottles, arguing that the policy could trigger job losses, discourage investment and reduce government revenue.
“We are in the age of data and analytics. Policies that affect businesses and livelihoods should be evidence-based,” he stated.
He added that the association had repeatedly demanded empirical evidence and statistical data to justify the proposed ban, but relevant authorities had yet to provide the requested information.
The AFBTE president further urged the Federal Government to introduce relief packages and incentives for manufacturers struggling with rising operational costs and economic pressures.
He also called for the establishment of more Free Trade Zones through the upgrade of existing industrial clusters, especially for long-established companies that have made significant contributions to Nigeria’s economic development but now face disadvantages compared to firms operating within designated free trade zones.
Okereke maintained that the objectives of the Presidential Enabling Business Environment Council should continue to guide regulators and government agencies in promoting ease of doing business across the country.
Meanwhile, AFBTE Treasurer, Osaro Omogiade, disclosed that the association recorded a total income of N165.45 million for the 2025 financial year, representing a 10.13 per cent increase from the N150.24 million generated in 2024.
He attributed the growth mainly to improved investment returns in the money market through Stanbic IBTC and United Capital.
However, Omogiade revealed that the association’s expenditure rose by 14.22 per cent to N138.25 million due to increasing operational costs, leaving a surplus of N27.21 million compared to N29.19 million recorded in the previous year.
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