Business
By Samuel Ibezim
THE Manufacturers Association of Nigeria, MAN, and Distillers and Blenders Association of Nigeria, DIBAN, have appealed to the federal government to halt the implementation of the new excise duty on alcoholic beverages and consult truly with stakeholders in the sector to save thousands of jobs. They also urged the government to ensure the survival of one of the oldest indigenous industry in the country.
Segun Ajayi-Kadir, MAN director-general and Patrick Anegbe, DIBAN chairman, told the media in a joint press conference on Wednesday in Lagos, that the new excise duty by Kemi Adeosun, finance minister, represents an increase from the current average of N30 per litre to N150 per litre in the first year of implementation and rises to N200 per litre subsequently.
Also, Anegbe said that it translates to an increase from current average duty of N270 to N1350 per carton in the first year and N270 to N1800 per carton from second year.
He warned that the new excise duty will negatively affect about 25,000 jobs in the sector as well threaten the source of livelihood of staff of over 250,000 connected small and medium enterprises, SMEs.
He said that DIBAN’s collapse despite over N420 billion investment because of the new duty would pave way for the complete takeover of the Nigerian wines and spirits market by the imported and smuggled brands.
The chairman refuted Adeosun’s claim that MAN and DIBAN were in attendance where the Tariff Technical Committee, TCC, recommended the new excise duty after a cautious considerations of the government’s fiscal policy for 2018 among others. Rather, he said that that there wasn’t prior consultation and engagement with them before the adoption of the new tax model. He warned that DIBAN’s downsizing of workers would affect government’s revenue considering that it generates over N60 billion from Pay As You Earn, PAYE, taxes every year.
Aare Fatai Odesile, DIBAN executive secretary, said that the timing of the new duty is wrong considering that Nigeria just exited recession, adding that the hike in the excise duty is an attempt to wipe out domestic efforts and promote foreign ones.
On the implication of alcohol on health, he said that its consumption can’t be stopped by the new tax which will lead to increase in the price of the product as it would make the consumers to look for cheap and substandard products which could endanger their lives.
Stating that DIBAN products are regulated, he added that producers also emphasise on responsible consumption in their adverts. He also reminded the government of its looming loss of revenue because of non-payment of tax by smugglers.
Odesile said that Nigeria ranks the highest among alcohol producing
countries in imposing excise duty, adding that this will not augur well for the economy.
Some members of DIBAN present at the press conference include Umoren Maureen Akpan, its treasurer and John Ichue, Pharma Alcohol International managing director among others.
In a related development, more than 100 protesters flooded the office of Manufacturers Association of Nigeria, MAN, Lagos, calling on the federal government to remove the astronomical excise duty for alcoholic beverages.
Stating that the government was dancing to tune of the International Monetary Fund, IMF, under the pretext of health concern, the protesters who came under the umbrella of Distillers and Blenders Association of Nigeria, DIBAN, carried placards displaying their demands.
Some of the inscriptions on the placards read: “Buhari Create Jobs, Do Not Take Away Jobs”, “Alcohol is not Nigeria’s Problem”, “Buhari Abeg No Be Alcohol Fall Your Son – Just Leave Alcohol” and “National Assembly Please Save Our Job” among others.
