By Bimbola Oyesola 08033246177, [email protected]
Workers in the food sector of the economy yesterday vowed to resist the new plan by the Federal Government to introduce collection of excise duty on non-alcoholic carbonated drinks.
The workers, under the umbrella of the Food, Beverage and Tobacco Senior Staff Association (FOTOB), warned that the attempt would be detrimental for the sector still bleeding from the aftermath of COVID-19 pandemic.
The debate on the justification for the introduction of excise duty on the non-alcoholic carbonated drinks has been on the front burner of discussion between the National Assembly, the Customs service and the Finance Ministry.
President of FOBTOB, Jimoh Oyibo, addressing journalists in Lagos, said if government goes ahead to introduce exercise duty, the country would be in total mess and outright collapse of the sector.
Speaking on the challenges confronting the sector, Oyibo stated that Federal Government’s justification on its planned Excise increase, is the fact that non-alcoholic drinks manufacturers are making fortunes and that there is a 30 percent excise levy on alcoholic drinks.
He cautioned , “This is not enough justification to subject companies that are struggling to survive to another financial burden”.
He therefore urged the Federal Government to engage all stakeholders constructively so as to arrive at a more beneficial conclusion to save the already struggling companies that are only surviving on a small profit margin.
Part of the challenges Oyibo mentioned is the influx of expatriates in Nigerian food companies, describing it as disheartening and unacceptable.
According to him, “We are seriously disturbed by the increase in the number of expatriates that have 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”, he said.
In a related development, the Association said that the insecurity in the country has greatly affected backward integration.
“This government is not sensitive to the plight of Nigerians. People are being killed in place of animals. How will backward integration policy be achieved without farmers going to farm”, he said.
Recall that Government had in the past created a clear need for greater diversification of the Nigerian economy to promote quality growth through planned backward integration.