By Dipo Olowookere
The Nigerian government has promised to look into the 500 percent tariff it imposed on alcoholic beverages produced in the country.
Minister of Labour and Employment, Mr Chris Ngige, made this promise in a statement signed yesterday by the Director of Press in the ministry, Mr Samuel Olowokere.
Earlier this month, federal government announced a new excise duty on alcoholic beverages and tobacco, causing stakeholders in the sector to kick against the new policy.
In the statement released yesterday by Mr Olowokere, the Minister explained that, “This (the review) will save the sector from imminent collapse and forestall the consequent loss of about 200,000 jobs.
“You have written to the federal government through me that the increase in excise duty on alcohol and beverages will create job losses.
“Because once you add a new cost and pass it on, there will be consumer resistance, resulting in low patronage.
“Whereas, the products coming from overseas that are being smuggled in which are cheap, will take over the market. It is a statement of fact.”
Mr Ngige, who received members of the National Union of Food, Beverage and Tobacco Joint Employers and Workers Association at his Abuja office on Friday, said further that, “I have passed your complaints and luckily we have a listening President who wants the good of all Nigerians.”
He assured the concerned stakeholders that, “The President will definitely ask the Minister of Finance and the economic management team to review the tariff.”
Earlier, leader of the delegation and the Acting General Secretary of the Union, Mr Mike Olarenwaju, emphasised that the 500 percent tariff increase by the Ministry of Finance on their products was counter-productive as the measure was an assured destruction of the sector.
According to him, “It will kill investments, it is already creating palpable fear in the operators, jobs losses is looming while imported products will displace local goods for reasons of smuggling and cheapness.”
