Will The Entire Value Chain Endure The Economic Impact Of Banning Satchet Alcohol

Will the economic effects of the satchet alcohol ban affect the entire value chain

The proposed prohibition on satchet alcohol presents a significant obstacle for small business owners, street vendors, and other stakeholders in the value chain. Due to the stakeholder's heavy reliance on the sale of satchet alcohol and the potential financial hardships and economic uncertainties resulting from the prohibition, the economic fallout threatens their livelihoods.

The NAFDAC ban is anticipated to drive companies farther into an economic abyss, worsening the nation's present unemployment crisis, especially at a time when economic fundamentals are already difficult for organized businesses.

In brief, NAFDAC has declared that alcoholic beverages in sachets, pet bottles, and glass bottles with a capacity of less than 200ml are prohibited. This five-year plan, which went into effect in 2018, sought to safeguard public health by progressively lowering the production of these risky products. A progressive reduction in the multi-pronged approach was observed, beginning in 2020 with a 50% decrease and ending with a complete ban in 2024.

Also See: National Union Of Tobacco And Food Beverage Members Protest Ban [VIDEO]

It demands the question of whether policymakers gave careful thought to the wider economic and social ramifications before enacting a ban on the sachetization of products in a nation suffering from severe economic crises, inflation, and recessionary pressures.