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.

“As I am talking to you, many of our members have been thrown into the labour market. We are still engaging government to see how best we can resolve it,” he stated.

Jimoh argued that smaller package sizes remain the preferred choice for many consumers whose purchasing power has been severely eroded by inflation and economic hardship.

“Not everybody wants to go for the big pack sizes. The smaller pack sizes are the cash cow. Allowing that policy to continue could close that sub-sector,” he warned.

The FOBTOB President further noted that manufacturers were grappling with multiple operational challenges ranging from poor road infrastructure and unstable energy supply to declining consumer demand.

“The economy is very tough for every business. Whether it is roads, energy or purchasing power, there are great challenges facing companies, particularly in the food sector,” he said.

On workers’ welfare, Jimoh maintained that the current national minimum wage of N70,000 was grossly inadequate given the prevailing economic realities and the rising cost of living.

“There is no amount that can truly quantify labour, but in this economy, the national minimum wage of N70,000 cannot go anywhere,” he lamented.

He called on employers to improve workers’ remuneration where possible while balancing wage reviews against the economic pressures confronting businesses and investors.

Jimoh also urged workers to embrace continuous training and skills development to remain relevant in an increasingly technology-driven workplace.

“One thing workers can do is upgrade themselves. When you see changing trends, move along with them and avoid making yourself unemployable,” he advised.

He disclosed that FOBTOB would continue to educate its members through zonal meetings and capacity-building programmes focused on career advancement, retirement planning and adaptation to emerging workplace realities.

He reaffirmed FOBTOB’s commitment to protecting workers’ interests while supporting policies capable of ensuring the long-term sustainability and growth of Nigeria’s food and beverage industry. (Vanguard)

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