Nigerian Gov’t Moves To Rescue Alcoholic Drinks Sector From ‘Collapse’

The Nigerian government, on Friday, said it will review the recent imposition of 500 per cent tariff on alcoholic beverages in order to salvage the sector from collapsing and forestall an imminent massive loss of jobs.

This was according to the Minister of Labour and Employment, Dr Chris Ngige, who said this while receiving in audience the National Union of Food, Beverage and Tobacco Joint Employers and Workers Association at his Abuja office.

Ngige said having received the petition written by the association that the recent hike in excise duty on alcoholic drinks may lead to loss of jobs, that he will ensure President Muhammadu Buhari speaks to the appropriate authorities to have the tariff reviewed.

“This will save the sector from imminent collapse and forestall the consequent loss of about two hundred thousand jobs,” said the minister.

“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. The President will definitely ask the minister of finance and the economic management team to review the tariff.”

Speaking further, Ngige said part of the aim of the Economic Recovery and Growth Plan (ERGP) of the Buhari administration is to create jobs, hence the need to review the tariff on alcoholic drinks in order to avoid loss of jobs.

Speaking on the government’s compassion for public workers despite redundancy in some Ministries, Departments and Agencies (MDAs), the minister said, “This is not to say that we do not know that in some places available jobs have more than available staff members to match them but this is a compassionate administration.

“The President does not want to throw many families into anguish. The President always said that he was a salary earner in all his working life.

“You can also see that we did not place an embargo on recruitment as we used to have years ago even while we were under recession.

“The federal government has been replacing staff members who exited as well as creating new jobs in the public sector. But this has to be complemented with the private sector jobs to have a full blend,” said Ngige.