Food manufacturers reject multiple taxes, regulatory burdens

The Association of Food, Beverage, and Tobacco Employers has cautioned the Federal Government against what it described as excessive taxation, arbitrary levies, and poor regulatory engagement, warning that these policies could threaten the survival of businesses in Nigeria’s food and beverage sector.

According to a statement, President of the AFBTE, Chinedum Okereke, gave the warning during the association’s 47th Annual General Meeting held recently in Lagos.

He stated that the food and beverage industry remained a critical pillar of the Nigerian economy because of its significant contributions to employment, public health, and economic growth. He added that government policies should support the sector rather than weaken it.

Okereke noted that many companies in the industry are struggling with rising operational costs and multiple taxes and charges imposed by government agencies without adequate 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 government institutions and businesses should be driven by collaboration, dialogue, and fairness to create a sustainable business environment.

The AFBTE chief also renewed the association’s opposition to the proposed ban on the packaging and sale of alcoholic drinks in sachets and small PET bottles, warning that the policy could worsen unemployment, reduce investment, and shrink government revenue.

“We are in the age of data and analytics. Policies that affect businesses and livelihoods should be evidence-based,” Okereke said.

He noted that the industry had repeatedly demanded empirical evidence and statistical data to justify the proposed ban but claimed relevant authorities had yet to provide such information.

The AFBTE president further appealed to the Federal Government to introduce incentives and relief packages for manufacturers battling rising production costs, foreign exchange challenges and infrastructure deficits.

He also advocated the creation of more Free Trade Zones through the upgrade of existing industrial clusters, especially for long-established companies that have contributed significantly to Nigeria’s economic development but now face disadvantages compared to firms operating within free trade zones.

He observed that the absence of dialogue between the government and the private sector often creates avoidable disputes and weakens investor confidence.

Okereke added that the objectives of the Presidential Enabling Business Environment Council should remain a guiding principle for regulators and government agencies in promoting ease of doing business in the country.

Meanwhile, the Treasurer of AFBTE, Osaro Omogiade, disclosed that the association recorded a total income of N165.45m for the 2025 financial year, representing a 10.13 per cent increase from the N150.24m generated in 2024.

He attributed the increase largely to improved returns on investments in the money market through Stanbic IBTC and United Capital.

Omogiade, however, noted that the association’s expenditure rose by 14.22 per cent to N138.25m due to the increasing cost of running its secretariat, leaving a surplus of N27.21m compared to N29.19m recorded in the previous year.