Nigeria’s food and beverage industry is grappling with a worsening employment crisis as rising production costs, foreign exchange instability, and regulatory restrictions continue to force manufacturers to cut jobs and scale back 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 struggling businesses. The union also cautioned that some companies may be forced to shut down if current challenges persist.
Speaking on the sidelines of the 114th Session of the International Labour Conference in Geneva, FOBTOB President, Oyibo Jimoh, said the sector’s heavy reliance on imported raw materials has exposed manufacturers to the impact of exchange rate volatility and rising operational costs.
According to him, the worsening foreign exchange situation has significantly increased production expenses, leaving many companies with little choice but to review their operations and reduce workforce numbers to remain viable.
Jimoh also expressed concern over government restrictions on sachet products and beverages packaged in containers below 200 millilitres, arguing that the policy has already contributed to job losses and threatens the survival of a key segment of the industry.
He noted that smaller package sizes remain the preferred option for many consumers facing declining purchasing power due to inflation and economic hardship. He warned that continued restrictions could lead to the collapse of businesses that depend heavily on such products.
Beyond regulatory challenges, the union leader identified poor road infrastructure, unstable energy supply, and weak consumer demand as major obstacles affecting manufacturers across the sector.
On workers’ welfare, Jimoh described the national minimum wage of N70,000 as inadequate in the face of rising living costs. While urging employers to improve remuneration where possible, he acknowledged the economic pressures confronting businesses and investors.
He also encouraged workers to embrace continuous training and skills development to remain competitive in an increasingly technology-driven labour market, stressing that adapting to changing workplace trends is essential for long-term employability.
Jimoh reaffirmed FOBTOB’s commitment to protecting workers’ interests through advocacy, training programmes, and engagement with government, while supporting policies that promote the long-term sustainability and growth of Nigeria’s food and beverage industry.
