500% Tariff Prelude To 200, 000 Direct Job Loss, Union Tells FG

The National Union of Food, Beverage and Tobacco Joint Employers and Workers Association (NUFBTEWA) warned of job cuts and more shutdowns if the 500% tariff imposed on beverages was not reviewed.

Acting General Secretary of the union, Com. Mike Olarenwaju, made this known when they met with the Minister of Labour and Employment, Senator Chris Ngige in Abuja on Thursday.

Cataloguing the plight of the association, Olarenwaju said the 500% tariff increase by the Ministry of Finance on their products was counter-productive as the measure was an assured destruction of the sector.

“It will kill investments, it is already creating palpable fear in the operators, jobs losses is looming while imported products will displace local goods for reasons of smuggling and cheapness,” he said.

He explained they were on SOS to the minister to save the sector from going the way of the textile industry as well as prevent the loss of about 200, 000 jobs with the attendant economic and social consequences.

“We have run to you as our last hope. Your antecedent in protecting the cause of the workers, that you have zero tolerance for anything that hurts the workforce is source of our confidence that the 500% tariff on our products, which spells doom for the sector will be looked into by the government.”

Speaking on the issues raised, the minister said the federal government will review the newly introduced 500% excise duty on locally produced alcoholic beverages to save the sector from imminent collapse and forestall the consequent loss of about two hundred thousand jobs.

“You have written to the Federal Government through me that the increase in excise duty on alcohol and beverages will create job losses because once you add a new cost and pass it on, there will be consumer resistance, resulting in low patronage whereas the products coming from overseas that are being smuggled in which are cheap, will take over the market. It is a statement of fact.

“I have passed your complaints and luckily we have a listening President who wants the good of all Nigerians. He will definitely ask the Minister of Finance and the economic management team to review the tariff. We cannot afford to create poverty and job losses here while promoting abundant jobs in other countries. Job losses are not part of this government and will not support the 500% tariff increase,” the minister said.