The Manufacturers Association of Nigeria (MAN) and Distillers and Blenders Association of Nigeria (DIBAN) have kicked against the Federal Government’s excise duties hike on wines and spirits produced locally.
The associations describe the hike as an “International Monetary Fund (IMF) backed policy that is wrong for the economy and bad for business.”
Speaking at a media briefing in Lagos, DIBAN’s Chairman, Engr. Patrick Anegbe, noted that they are not against government fiscal revenue drive but that the policy must be halted until wide consultations with stakeholders have been held.
He said, “The hike can lead to the collapse of indigenous wines and spirits sector, resulting in job loss and a multiple negative effect on other sub-sectors. It threatens N420 billion investments.”
The Director-General, MAN, Segun Kadiri andSecretary-General of DIBAN, Fatai Odesile both said the policy will not only destroy the local industry, which they say puts a question mark on government’s promise to diversify the economy but will make the wines and spirits industry unregulated and unmonitored, thereby constituting a health hazard.
The Federal Government had, in March, announced a new excise duty of N1,350 per case, from N270, in the first year; and in the second year, N1,800, an increase of about 545 percent.
The Federal Government also gave 90 days before implementation commences.