20,000 jobs at risk over increase in excise duty, union warns

The National Union of Food, Beverages and Tobacco Employees (NUFBTE) has warned that more than 20,000 jobs might be lost with the recent upward review of excise duty on alcoholic beverages and tobacco. The union’s President, Lateef Oyelekan, said the new government policy would increase the cost of production, warning that if that happens, employers […]

The National Union of Food, Beverages and Tobacco Employees (NUFBTE) has warned that more than 20,000 jobs might be lost with the recent upward review of excise duty on alcoholic beverages and tobacco.

The union’s President, Lateef Oyelekan, said the new government policy would increase the cost of production, warning that if that happens, employers would have to look for a way of cutting cost.

The new tariff would equally make Nigerian companies uncompetitive with their counterparts abroad and would further encourage importation instead of local production, he added.

“We can recall that Dunlop, Mitchellin relocated to Ghana due to unfavourable policy and now produce there and still bring the products to Nigeria because this is where the market is. That means Nigeria is providing employment for foreigners while our people walk on the streets daily looking for jobs. It is sad,” he said. 

He therefore urged the federal government to formulate policies that would secure jobs and guarantee more employment.