LAGOS/Nigeria: The Food, Beverages and Tobacco Senior Staff Association (FOBTOB) has urged the Federal Government and stakeholders in the food industry to urgently rescue the sector from going into extinction.
Its National President, Mr Jimoh Oyibo, made the call at a forum in Lagos, Thursday, describing the industry as “life of any nation that must be taken care of, for it to survive”.
Oyibo said that since assumption of office in June 2021, members of his team had paid working visits and held meetings with member companies of the association.
“Our movement round the companies is to get acquainted with the challenges they are facing.
“One of the challenges, which has been historical in nature, is the issue of expatriates.
“We are seriously disturbed by the increase in the numbers that had flooded the companies in our industry.
“This is disheartening and unacceptable to us; this attitude alone has led to continuous taking over of jobs that are exclusive rights of indigenous workers.
“Although, we have tackled the menace headlong in the past and I am using this medium to state that we will continue the struggle to save our jobs,” the association president said.
Oyibo said that plans by the government to raise excise duty on non-alcoholic carbonated drinks would further suffocate the already struggling companies.
He noted that the debate on the justification for the introduction of excise duty on the drinks had been on the front burner of discussion among the National Assembly, Custom and the Finance Ministry.
“The justification is the fact that non-alcoholic drinks manufacturers are making fortunes and that there is 30 per cent excise levy on alcoholic drinks.
“This is not enough justification to subject companies that are struggling to survive to another financial burden.
“We are using this medium to call on the government to engage all stakeholders constructively.
“This is to arrive at a more beneficial conclusion to save the already struggling companies in our sector that are only surviving on a small profit margin,” Oyibo said.
He said that while government’s plan to diversify the economy to promote quality growth through backward integration was commendable, there was need to address insecurity.
According to a website, www.investopedia.com, backward integration is when a company buys another company that supplies the products or services needed for production.
“Though, we view this as a very good plan that is capable of stimulating economic development, most especially in the manufacturing sector.
“However, as good as it sounds, the challenges associated with it include banditry, kidnapping, agitation for nationhood, among others.
“You set up a farm, you cannot access your farm; how do you now get your raw materials; how can it be achieved, where there is security challenge?,” Oyibo said.
