Nigeria’s food and beverage industry is grappling with a deepening employment crisis as rising production costs, foreign exchange volatility and regulatory policies continue to trigger layoffs and force companies to scale down operations.
The Food, Beverage and Tobacco Senior Staff Association (FOBTOB) has warned that more workers could lose their jobs unless urgent measures are introduced to support manufacturers struggling under mounting economic pressures.
Speaking on the sidelines of the 114th Session of the International Labour Conference in Geneva, FOBTOB President, Oyibo Jimoh, said many companies in the sector rely heavily on imported raw materials, making them particularly vulnerable to exchange rate fluctuations and escalating production costs.
According to him, the worsening foreign exchange situation has significantly increased the cost of doing business, forcing several firms to review their operations and workforce strength in a bid to survive.
Jimoh also expressed concern over restrictions on sachet products and beverages packaged in containers below 200 millilitres, noting that the policy has already resulted in job losses and could further threaten a key segment of the industry.
He said many workers had already been pushed into the labour market, adding that the union was engaging government authorities to find a lasting solution.
The FOBTOB president argued that smaller package sizes remain the preferred option for many Nigerians whose purchasing power has been weakened by inflation and economic hardship.
He warned that continued restrictions on such products could undermine the viability of the sub-sector, which serves a large segment of consumers.
Beyond policy challenges, Jimoh noted that manufacturers are contending with poor road infrastructure, high energy costs, unstable power supply and weak consumer demand, all of which have increased the pressure on businesses.
“The economy is very tough for every business,” he said, stressing that companies in the food sector are facing enormous operational difficulties.
On workers’ welfare, Jimoh maintained that the national minimum wage of N70,000 is inadequate in the face of current economic realities and rising living costs.
He urged employers to improve remuneration where possible while balancing wage increases against the financial pressures confronting businesses.
Jimoh also encouraged workers to embrace continuous training and skills development to remain competitive in an increasingly technology-driven workplace.
He disclosed that FOBTOB would continue to support members through capacity-building programmes, career development initiatives and retirement planning seminars.
The union, he added, remains committed to protecting workers’ interests while advocating policies that promote the long-term growth and sustainability of Nigeria’s food and beverage industry.
