FG To Review Tariff Hike On Tobacco, Alcoholic Beverages

Omotola Collins
4 Min Read

The Federal Government has indicated its intention to review downward the 500 percent tariff increase imposed recently on local beverages and tobacco products.

The Minister of Labour and Employment, Dr. Chris Ngige, made the disclosure on Friday when members of the National Union of Food, Beverage and Tobacco Joint Employers and Workers Association visited him to make a strong case on the need for government to reconsider the fiscal measure.

A statement issued by the Director of Press in the ministry, Mr. Samuel Olowokere, quoted the minister as saying that the review of the tariffs was to prevent a total collapse of the beverages industry in the country and increase employment rate.

The minister stated:  “This will save the sector from imminent collapse and forestall the consequent loss of about two hundred thousand 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.

“I have passed your complaints and luckily we have a listening President who wants the good of all Nigerians. The President will definitely ask the Minister of Finance and the economic management team to review the tariff”, Ngige assured.

The minister, who restated the commitment of the present government to job creation and human capital development, pointed out this explained why job creation was made a key component of the Economic Recovery and Growth Plan (ERGP).

He clarified further:  “This is not to say that we do not know that in some places available jobs have more than available staff members to match them but this is a compassionate.

“The President does not want to throw many families into anguish. The President always said that he was a salary earner in all his working life. You can also see that we did not place an embargo on recruitment as we used to have years ago even while we were under recession..

“The Federal Government has been replacing staff members who exited as well as creating new jobs in the public sector. But this has to be complemented with the private sector jobs to have a full blend,” the minister said.

Earlier in his remarks, the Acting General Secretary of the union Mr. Mike Olarenwaju, who led the delegation to the minister’s office, pointed out that the 500 percent tariff increase on the affected products was counter-productive as it will lead to the collapse of many companies in the sector.

He appealed to the minister to prevent the loss of an estimated 200, 000 jobs with the attendant negative economic and social consequences on the nation’s economy.

Olanrewaju said that coming to the minister was the last hope of the workers.

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