The Association of Food, Beverage, and Tobacco Employers (AFBTE) has raised concerns over the unimpressive growth of the private sector despite reforms by the Federal Government, lamenting that the sector’s operational efficiency remains under significant threat.

Noting that the performance of the private sector is a critical measure in assessing economic growth, positive transformation, and development, the employers said that despite marginal improvement, many of the constraints previously cited as responsible for the sector’s unimpressive growth remain prevalent.

President, AFBTE, Chinedum Okereke, said this during the association’s 47th yearly general meeting, in Lagos, highlighting the challenges of high operating cost coupled with incessant disruptions occasioned by changes in regulations and policies, the overbearing posture of regulators, as well as unfavourable laws.

He said constraints of irregular power supply, increasing insecurity in the supply and logistics chain, cost pressure occasioned by high lending rates, galloping equipment prices, infrastructure deficit, high transportation costs of materials and machinery, and energy, among others, have negatively impacted profit margins and production growth.

Recognising the importance of the food and beverage sector, the AFBTE President said it remained a major contributor to the Nigerian economy because of its critical role in the nation’s financial and physical health, as well as the well-being of its people.

Given the importance, Okereke said support from the Federal Government was imperative if the sector is to maximise its contribution to the country’s economic ecosystem.

He said the imposition of excessive taxes, levies, and charges, as well as the reluctance of some government ministries, departments, and agencies to respond to requests for engagement and clarification, does not support the development of sustainable relationships.

To this end, he appealed to all relevant government institutions with which the association and its members are required by law to engage, embrace collaboration and dialogue in the course of official dealings, even as he stressed that there is also an urgent need for a thorough review of the demands made on member-companies, many of which, he said, are excessive and unreasonable.

On other concerns requiring the government’s attention, the AFBTE boss called for a renewed push to ban alcoholic beverages in sachets and small PET bottles.

He drew the attention of the Federal Government to the negative and destructive implications of banning the packaging and sale of alcoholic beverages in sachets and small PET bottles, particularly regarding business contraction, revenue losses, and job losses.

Okereke appealed to the Federal Government to seriously reconsider its decision.

On provision of incentives to support businesses, he canvassed for the government to urgently put together what the association described as ‘sweeteners’ to support member companies burdened by the enormous costs of doing business.

He stated that the intention behind the proposal 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.