The Association of Food, Beverage and Tobacco Employers (AFBTE) has urged the Federal Government to reconsider what it termed the rising burden of multiple taxation, arbitrary levies, and weak regulatory consultation, warning that such practices could endanger the survival of operators in Nigeria’s food and beverage industry.
Speaking at the association’s 47th Annual General Meeting in Lagos, AFBTE President, Chinedum Okereke, said the sector plays a vital role in the country’s economy, particularly in job creation, public health support, and overall economic output. He stressed that government policies should be structured to strengthen the industry rather than place additional pressure on it.
Okereke noted that several companies are currently grappling with escalating production and operating costs, compounded by numerous taxes and charges imposed by different government agencies, often without adequate stakeholder engagement.
He described the food and beverage industry as a key component of national development, insisting that supportive government intervention is necessary for sustained growth and stability. According to him, policy formulation should be guided by cooperation, continuous dialogue, and fairness between regulators and the private sector.
The AFBTE president also reiterated the association’s rejection of the proposed restriction on the packaging and sale of alcoholic beverages in sachets and small PET bottles. He warned that such a move could lead to job losses, discourage investment, and reduce government revenue.
He further argued that regulatory decisions affecting businesses should be grounded in verifiable data, adding that the industry has consistently requested empirical justification for the proposed ban, which, according to him, has not been provided by the relevant authorities.
Okereke called on the Federal Government to introduce supportive measures, including incentives and relief packages, to help manufacturers cope with rising costs of production, foreign exchange pressures, and infrastructure challenges.
He also advocated for the expansion and upgrading of Free Trade Zones and industrial clusters to better support long-established companies that contribute significantly to economic development but face competitive disadvantages compared to firms operating within designated trade zones.
He warned that poor communication between government agencies and the private sector continues to create unnecessary friction and weakens investor confidence, adding that the principles of the Presidential Enabling Business Environment Council should guide regulatory actions to improve ease of doing business in the country.
Meanwhile, AFBTE Treasurer, Osaro Omogiade, revealed that the association posted a total income of N165.45 million for the 2025 financial year, marking a 10.13 percent increase from N150.24 million recorded in 2024.
He attributed the growth to improved returns from money market investments managed through Stanbic IBTC and United Capital.
However, Omogiade noted that expenditure also rose by 14.22 percent to N138.25 million, driven by higher secretariat running costs, resulting in a surplus of N27.21 million, slightly lower than the N29.19 million recorded in the previous year.