The Association of Food, Beverage, and Tobacco Employers has warned the Federal Government against excessive taxation, arbitrary levies, and poor regulatory engagement, saying the policies could endanger businesses operating in Nigeria’s food and beverage sector.
The warning was issued by the President of the association, Chinedum Okereke, during the 47th Annual General Meeting of the AFBTE held recently in Lagos, according to a statement.
Okereke described the food and beverage industry as a critical pillar of the Nigerian economy because of its contribution to employment, public health, and economic growth. He stressed that government policies should strengthen the sector rather than create additional burdens for operators.
According to him, many companies in the industry are currently battling rising operational costs and multiple taxes and charges imposed by government agencies without proper consultation.
“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,” Okereke said.
He added that the relationship between businesses and government institutions should be built on collaboration, dialogue, and fairness to ensure a sustainable operating environment.
Okereke also renewed the association’s opposition to the proposed ban on the packaging and sale of alcoholic drinks in sachets and small PET bottles. He warned that the policy could lead to job losses, reduced investment, and lower government revenue.
“We are in the age of data and analytics. Policies that affect businesses and livelihoods should be evidence-based,” he said.
The AFBTE president stated that the association had repeatedly requested empirical evidence and statistical data to justify the proposed ban but claimed that relevant authorities had yet to provide the necessary information.
He further appealed to the Federal Government to introduce incentives and relief measures for manufacturers struggling with rising production costs, foreign exchange challenges, and infrastructure deficits.
Okereke also advocated the establishment of more Free Trade Zones through the upgrade of existing industrial clusters. He argued that long-established firms that have contributed significantly to Nigeria’s economy now face disadvantages compared to companies operating within free trade zones.
According to him, the absence of regular dialogue between government and the private sector often creates avoidable disputes and weakens investor confidence.
He added that the goals of the Presidential Enabling Business Environment Council should remain central to the activities of regulators and government agencies in promoting ease of doing business in Nigeria.
Meanwhile, the Treasurer of AFBTE, Osaro Omogiade, disclosed that the association generated a total income of N165.45m in the 2025 financial year, representing a 10.13 per cent increase from the N150.24m recorded in 2024.
Omogiade attributed the increase mainly to improved returns on investments in the money market through Stanbic IBTC and United Capital.
He, however, noted that the association’s expenditure rose by 14.22 per cent to N138.25m due to increasing administrative and operational costs at its secretariat. The association recorded a surplus of N27.21m, lower than the N29.19m posted in the previous year.
