[News] Will the entire value chain endure the economic impact of banning satchet alcohol? Zion Rufus asks

“The proposed ban on satchet alcohol poses a formidable challenge for street hawkers, small shop owners, and various groups in the value chain. The economic fallout threatens their livelihoods, as these stakeholders heavily rely on the sale of satchet alcohol, and the prohibition may lead to financial hardships and economic uncertainties.

Particularly at a time when economic fundamentals are already challenging for organized businesses, the NAFDAC ban is expected to push businesses further into an economic abyss, exacerbating the current unemployment crisis in the country.

To provide context, NAFDAC recently announced a ban on alcoholic beverages in sachets, pet, and glass bottles of 200ml and below. Commencing in 2018, this five-year plan aimed to protect public health by gradually reducing the production of these risky products. The multi-pronged approach saw a gradual decline, starting with a 50% decrease in 2020 and culminating in the complete ban in 2024.

Banning the sachetization of products in a country grappling with acute economic crises, inflation, and recessionary pressures prompts questions about whether policymakers thoroughly considered the broader economic and social implications before implementing such a prohibition.