The Association of Food, Beverage, and Tobacco Employers (AFBTE) has raised concerns over the unimpressive growth of the private sector despite ongoing reforms by the Federal Government. The employers lamented that the sector's operational efficiency remains under significant threat, hindering its potential to drive economic growth and development.
Challenges Facing the Private Sector
Speaking during the association's 47th yearly general meeting in Lagos, AFBTE President Chinedum Okereke highlighted numerous challenges that continue to plague the private sector. These include high operating costs, frequent disruptions due to regulatory and policy changes, an overbearing posture by regulators, and unfavourable laws. He noted that despite marginal improvements, many of the constraints previously cited as responsible for the sector's unimpressive growth remain prevalent.
Okereke pointed out specific issues such as irregular power supply, increasing insecurity in the supply and logistics chain, cost pressures from high lending rates, galloping equipment prices, infrastructure deficits, and high transportation costs for materials and machinery. These factors, he said, have negatively impacted profit margins and production growth.
Importance of the Food and Beverage Sector
Emphasizing the significance of the food and beverage sector, Okereke stated that it remains a major contributor to the Nigerian economy due to its critical role in the nation's financial and physical health, as well as the well-being of its people. He stressed that support from the Federal Government is imperative for the sector to maximize its contribution to the country's economic ecosystem.
The AFBTE President criticized the imposition of excessive taxes, levies, and charges, as well as the reluctance of some government ministries, departments, and agencies to engage with the private sector. He urged all relevant government institutions to embrace collaboration and dialogue in official dealings, emphasizing the need for a thorough review of demands made on member-companies, many of which he described as excessive and unreasonable.
Call for Policy Reconsideration
Okereke also called for a renewed push to ban alcoholic beverages in sachets and small PET bottles, drawing attention to the negative implications of such a ban. He warned that it could lead to business contraction, revenue losses, and job losses, and appealed to the Federal Government to seriously reconsider its decision.
On incentives to support businesses, Okereke proposed that the government urgently provide what the association described as 'sweeteners' to support member companies burdened by the enormous costs of doing business. He stated that the intention is to encourage companies, including multinationals, to remain in Nigeria and continue investing in the economy. The association proposed that such support should take the form of relief and allowances.
