The Nigerian federal government is facing calls to safeguard the country’s local energy drink business, worth $500 million, from foreign competition. Local producers are appealing for protection for newly established industries, citing the preservation of over 2,000 direct jobs and the welfare of their dependents. They emphasize their capacity to meet the country’s demand for energy drinks, thereby reducing reliance on imports.
According to Ayodele Joseph, the Director-General of Africa Brands Group, since the last review of the import prohibition list, more than 10 brands have invested in local energy and health drink production, amounting to over $500 million in total investments. The local producers are urging the government to prioritize the health and safety of Nigerians by curbing the importation of energy and health drinks, as many imported products are not formulated to withstand Nigeria’s temperature and pose risks when stored and sold in the open market.
Ayodele stressed the need to prevent the dumping of cheap foreign goods in Nigeria, as it hampers the growth of local industries. He suggested that banning the importation of energy and health drinks would encourage increased investment in local production, boost capacity utilization, and enhance the export potential of domestic manufacturers. By doing so, Nigeria can also prevent Nigerian companies from relocating to neighboring countries due to what they perceive as a hostile production environment. Furthermore, protecting these investments will also safeguard the associated industries, such as the can and corrugated cartons industry, and the employment opportunities they provide.
The local producers are urgently appealing for government action to prevent the collapse of over $500 million worth of investments in the local energy and health drink industries. They emphasize the importance of securing the future of these investments, fostering a favorable production environment, and protecting employment opportunities for Nigerians.
The plea from local producers highlights the significance of nurturing domestic industries, promoting self-sufficiency, and ensuring the well-being of Nigerian businesses and workers. As the government considers the concerns raised, the preservation and growth of the local energy drink industry will be crucial for Nigeria’s economic development and the overall welfare of its citizens.