Nigeria’s food and beverage industry is facing worsening employment crisis as rising production costs, foreign exchange volatility and regulatory measures continue to force companies to cut jobs and scale down operations.
Consequently, the Food, Beverage and Tobacco Senior Staff Association, FOBTOB, has raised the alarm over increasing layoffs across the sector, warning that unless urgent interventions were implemented, more workers could be thrown into the labour market, while some businesses might be forced to shut down.
The union said the combined impact of soaring energy costs, poor infrastructure, weak consumer purchasing power and policy restrictions on certain product categories has placed unprecedented pressure on manufacturers struggling to remain afloat.
Speaking with journalists on the sidelines of the just concluded 114th Session of the International Labour Conference in Geneva, FOBTOB President, Oyibo Jimoh, said the industry’s dependence on imported raw materials had made it particularly vulnerable to exchange rate fluctuations and escalating production costs.
He said: “Most of our companies in the sector depend on imported raw materials. If you narrow it down to exchange rates, it is biting harder and that is understandable.
“The worsening foreign exchange situation has significantly increased the cost of doing business, compelling many companies to review their operations and workforce strength to survive.”
He expressed particular concern over restrictions on sachet products and beverages packaged in containers below 200 millilitres, saying the policy had already led to job losses and could further threaten the survival of a critical segment of the industry.
