Prioritising food, beverage sector for job creation, growth

With the shutdown, exit of multinationals and members due to redundancies in different member companies, workers in the food, beverage and tobacco industry have called on the Federal Government to urgently salvage the sector from collapse, stating that the industry has the potential to create jobs and contribute significantly to the country’s economic growth, writes GLORIA NWAFOR.

In the last three years, the Food, Beverage and Tobacco Senior Staff Association (FOBTOB) has witnessed the exit of about 325 members due to incessant redundancies in nine different member companies.

This is apart from those, who have left the country in pursuit of greener pastures overseas due to the high cost of living and unfavourable operating environment.

Notwithstanding that the industry is a crucial part of the nation’s economy, it can provide employment opportunities for millions and contribute significantly to the country’s Gross Domestic Product (GDP).

Stakeholders, who gathered at the 15th National Delegates’ Conference of FOBTOB in Asaba, Delta State, stated that the industry required urgent attention, considering the several challenges currently impeding the sector’s growth.

With the challenges bothering high energy costs, lack of stable power supply, naira devaluation, poor infrastructure (bad roads), high cost of raw materials and multiple taxation among others, the workers, said have hindered the sector from performing optimally.

Addressing the audience on the theme, ‘Rescuing the Food, Beverage and Tobacco Industry from the Danger of Collapse: Roles and Expectations of Stakeholders’, National President, FOBTOB, Jimoh Oyibo, called on the Federal Government to prioritize the industry and provide the necessary support to address the challenges facing the sector. He said with the right policies and investments, the industry could thrive, provide jobs and contribute significantly to Nigeria’s economic growth.

The FOBTOB boss lamented that the most significant issue in the sector was the lack of stable power supply, which has resulted in reduced production and capacity utilisation.

Noting that the food, beverage and tobacco industries are among the largest consumers of electricity in Nigeria, Oyibo, however, lamented that inadequate investment, poor maintenance culture and outdated infrastructure have caused epileptic power supply.

This, according to him, makes it difficult for manufacturers to operate efficiently. Further, he said the rising cost of gas has also added to production costs.

He stressed that the terrible state of the roads was another menace that has made it challenging for companies to transport goods from one place to another, thereby, leading to delays, damages and increased transportation costs.

To address this, Oyibo said the transportation in Nigeria needed to be improved, including existing roads and the construction of new ones. Specifically, he stressed that most government policies, driven by the National Agency for Food and Drug Administration and Control (NAFDAC) and the Nigeria Customs Service are not favourable to local manufacturers.

According to him, local manufacturers face multiple taxations from various agencies before receiving the required approval for production activities. He urged the Federal Government to formulate an all-inclusive policy that supports local manufacturers, including tax holidays or reliefs to alleviate the financial burden on member companies.

To achieve this, the FOBTOB chief demanded that the government work closely with industry stakeholders and involve them in policy-making decisions that affect the sector. He expressed confidence that with the government’s commitment to supporting the industry, significant progress could be made.

The keynote speaker and Managing Director of Nestle Nigeria Plc, Wassim Elhusseini, highlighted three reasons for the collapse, noting that the industry would never vanish but might be certainly degraded.

He said a collapse in danger due to moral decline, changing the model and shrinking categories. He said the moral decline may be hinged on companies deviating from purpose, jeopardising quality, deceiving customers, avoiding dues, circumventing policies as well as risking health and safety, among others.

To rescue the sector from the verge of collapse, Elhusseini said the government, agencies and FOBTOB could support to stop the collapse. This, he mentioned, could be through the delayed implementation of all the new levies and support on tax committee proposals; building strong and lasting infrastructure; creating a harmonious industrial climate; being business-centric and proactive advocacy with government and agencies.

The Nestle boss revealed how his organisation has navigated through efficiency improvement, despite the rising cost of commodities that has led to fewer shopping trips because of the purchasing power of consumers that has continued to dip.

The Chief Special Guest of Honour and Deputy Governor of Delta State, Monday Onyeme, said the theme was apt to ensure companies remain in business, maintain zero job loss and lead to the establishment of more companies with its multiplier effect of more people from the primary stage of production to secondary stage of consumption.

Onyeme, who was represented by the Deputy Chief of Staff, Chris Osakwe, noted that one major challenge facing businesses today was high inflation. While calling for a reduced inflationary rate to ensure a stable economy, he added that it was crucial to ensure businesses remain in operation.

During their fraternal addresses, the Permanent Secretary, of the Federal Ministry of Labour and Employment, Ismaila Abubakar, expressed the ministry’s commitment to ensuring industrial harmony.

Represented by the Registrar of Trade Unions, Amos Falonipe, noted that check-off deductions from the wages of union members are a public fund to be accounted for.

For the sake of probity and accountability, he urged that the branches of the union should render their accounts to the national body which would incorporate them in the returns to be submitted to the Registrar of Trade Unions for approval.

Also, the union’s employers body, the Association of Food, Beverage and Tobacco Employers (AFBTE), represented by its General Secretary, Adewale Jones, said with the challenges bedeviling the sector, now was the time to collaborate and come together strongly for the industry’s survival.

He urged the delegates not to out of emotions make statements that would create panic but should rather base their facts on data and confirm the veracity of information before making pronouncements.

Additionally, TUC President, Festus Osifo represented by TUC National Auditor, Dr Ogbonna Obinna, said notwithstanding that the present economic crunch was biting hard and affecting the industrial areas, thereby increasing the cost of production and causing redundancy and work production

He pledged his support to ensure the industry does not go into collapse, saying the trade union would work with stakeholders including the government to rescue the sector from collapse. He said the congress would use all means, including civil and industrial to support the union to ensure the sector does not collapse.