Olalere Modupeoluwa
On February 1, 2024, the National Agency for Food and Drug Administration and Control (NAFDAC) officially announced its intent to ban sachet alcoholic beverages and all PET bottles under 200ml, which has sent shock waves throughout Nigeria’s economy.
Prof. Mojisola Adeyeye, the Director-General of NAFDAC, stated that the ban targets sachet alcohol because the packages can be easily accessed by minors and promote binge drinking behavior. “We are committed to protecting Nigerians from the dangers of unregulated alcohol consumption,” she said during the February 2024 announcement. The agency also cited environmental reasons in its ban, noting that sachets also contribute to the problem of plastic pollution.
This ban came on the recommendation of a very high-profile committee with representation from both the Federal Ministry of Health, NAFDAC, the Federal Competition and Consumer Protection Commission (FCCPC), and relevant industry stakeholders, that started with a 5% phased reduction of sachet alcohol production beginning in January 2022 and ultimately reached a ban by 31 January 2024.
After considerable criticism and protests from some industry stakeholders, NAFDAC officially lifted the ban on sachet products from May 19, 2025, until December 31, 2025. Kenneth Azikiwe, Director of the Federal Capital Commission of the National Agency for Food and Drug Administration & Control, clarified that the ministerial lifting is intended to be temporary to allow manufacturers and regulators time to work together to create a better-structured and regulated enforcement scheme. “After this date, the full enforcement of the ban will commence,” he warned.
While on this suspension, producers are encouraged to invest in safer, more environmentally friendly packaging options. Some facilities have already decided to pivot production to comply with anticipated regulations regarding bottling and canning alcoholic beverages.
Health professionals warn of the health risks associated with sachet alcohol consumption, including addiction, road fatalities, and chronic diseases. The World Health Organization states that harmful alcohol use is linked to over 200 health conditions and social issues like gender-based violence.
However, some argue that the ban was abrupt and had limited stakeholder consultation. Members of parliament are calling for a moratorium to allow for consultations and a gradual phase-out, fearing that a prohibition could worsen the problem of illicit production.
The ban, meant to tackle health issues and minimize access to cheap alcohol among children and adolescents, looks poised to impact a huge part of Nigeria’s economy. Sachet alcohol is very much a part of Nigeria’s informal sector, where it is very popular because of its cost-effectiveness and availability within the market. The potential implications of the ban can be substantial in terms of job loss, reduction of tax revenue for all levels of government, and impacting the livelihoods of millions of people.
Economic experts argue that the Nigerian economy will be overly challenged to absorb the ban without mitigation measures, as the beverage alcohol sector contributes to economic continuity and tax revenue support. Industry experts suggest that the government should implement stricter rules on sachet alcohol manufacture and sales, such as licensing, age verification, and quality control, to strike a compromise between economic reality and public health goals.
The prohibition on sachet alcoholic drinks risks extinction for thousands of enterprises and jobs. The Manufacturers Association of Nigeria (MAN) and the Distillers and Blenders Association of Nigeria (DIBAN) estimate that at least 500,000 jobs will be affected. These jobs include manufacturers, distributors, retailers, and informal vendors who sell sachet alcohol.
Segun Ajayi-Kadir, MAN’s Director General, warned, “The ban is likely to push many businesses to close, worsening Nigeria’s unemployment crisis.” This warning is severe in a country where unemployment remains a major problem. Many small and medium-sized enterprises (SMEs) that depend on sachet alcohol-making and sale would close with no other income options.
The informal sector in Nigeria, particularly street hawkers, small retailers, and local distributors selling sachet alcohol, is at risk due to the potential ban. Many such traders operate with low capital and are expected to lose their primary revenue source. The ban will also reduce government revenue from customs, excise duties, taxes, and levies on alcoholic beverages.
Industry insiders are concerned that the ban could shrink their market, impact public finances, and decrease government funding for essential services and infrastructure. Additionally, the ban risks derailing investment in the sector, as many producers have invested heavily in sachet packaging due to their popularity and affordability.
The ban has also amplified dialogue on Nigeria’s informal economy and the need for regulations that protect the vulnerable while bolstering public health. Many advocates have argued that any sustainable impact will require some form of cooperation between government, industry, and civil society.
The prohibition on sachet alcohol addresses larger social issues in Nigeria. Alcohol consumption varies according to many cultural, economic, and social factors. The affordability of sachet alcohol for youths and low-income earners raises concerns about public disorder and addiction.
NAFDAC has therefore continued to express its support for public health and responsible drinking by increasing the performance of public awareness campaigns throughout the nation, as well as raising awareness with distributors and the public on the dangers of drinking underage alcohol and the importance of compliance.
Community leaders and NGOs have praised the ban on sachet alcohol, citing violence and health issues. However, they worry it will cause economic hardship, especially for those in areas with limited alternative livelihoods. Informal economic activities require money, and banning sachet alcohol will likely result in costs for individuals reliant on it.
The informal sector does not always receive the credit it deserves in Nigeria’s economy. It provides a means for generating revenue for millions of Nigerians who do not have the luxury of getting any other type of job in the formal sector. Policies that inhibit participation in the informal economic sector without alternative support frameworks will only deepen the cycle of poverty and broaden unrest.
Environmental concerns related to sachet packaging also entered the discussion. A growing amount of solid waste plastic is linked to sachets, creating pollution and health implications. The proposed ban on sachet alcohol is becoming a more prevalent global issue to mitigate the use of single-use plastic; however, it needs a comprehensive waste management plan.
The interim halt of the ban demonstrates NAFDAC and the government’s realization of the need for a more holistic or collective approach to attaining a solution. In turn, stakeholders are now trying to design support reflecting public health, economic, and environmental sustainability.
Manufacturers are considering invention opportunities that satisfy health requirements and environmental responsibilities. Some have been investing in recyclable bottling, while others are improving their quality control to meet legislative demands.
Governmental agencies have introduced stricter enforcement against illicit alcohol production and sales, which are more dangerous to health than sachet products meeting regulatory mandates. There are ongoing campaigns to educate the public and promote responsible drinking, as well as awareness of alcohol and other harms.
People and experts recommend that governments develop policies to support small businesses impacted by the legislation, including better access to credit, training, and alternative means of livelihood. Many argue these steps could limit the economic shock and support inclusive and equitable growth.
The ban on sachet alcoholic beverages has uncovered the ambition for better data collection and research into patterns of alcohol consumption and its economic impacts on revenue collection and enterprise. Evidence-based policy could offer options for interventions that would provide some protection to the health agenda without creating too much impact on livelihoods.
The effects of NAFDAC’s ban on sachet-packaged alcoholic drinks will be felt for months and years. The temporary moratorium opens an opportunity for dialogue and adjustment, but tensions compounded around health priorities and economic realities remain.
Nigeria’s alcohol industry stands at a junction. A future of innovation and responsible production in sustainable packaging could reshape the sector into an economic growth engine for the nation while improving public health.
At the same time, protecting vulnerable workers who depend on the informal economy will necessitate proper policies and collaboration. A way forward will require initiative from the Government, the industry, and civil society to navigate solutions for complex challenges connected to alcohol consumption in Nigeria.
The ban on sachet alcohol tests Nigeria’s ability to mediate competing interests in building a healthier, more inclusive economy.
