10 Companies Shut Down Operation In Nigeria’s Food, Beverages Industry Between 2015 and 2020 – TUC President, Olaleye

4 months ago Dammylink 0

The President, Food Beverage and Tobacco Senior Staff Association (FOBTOB), Comrade Quadri Olaleye has said that between 2015 and 2021,10 different companies in the food, beverage and tobacco industry have shut their operations and businesses in Nigeria due to the harsh working environment particularly government policies and stifling the nation’s economy.

Comrade Quadri Olaleye, who decried the negative effects of government policies and COVID-19 in the sector, also said the sector had suffered from mass sack of workers and several factory closures, within the last five years.

Olaleye was speaking at the 14th National Delegates’ Conference (NDC) of the Food Beverage and Tobacco Senior Staff Association (FOBTOB) held in Abuja at the weekend.

He listed most of the companies affected as: Bendel Brewery Limited; Danico West Africa Limited; International Breweries Limited; Pal Breweries Plc; Port Harcourt Flour Mills Limited; Scoa Foods Limited; Standard Biscuit & Agro Products, Jos; UTC Foods Plc; Vitamalt Plc; Ranona Limited; and Deli Foods Limited.

He said, “it is our hope that the government would wake up from the snail speed approach to governance since governance is a serious business for serious-minded people.

The government must urgently start addressing the issue of the growing unemployment rate, insecurity, and the general infrastructural decay in our nation.”

He equally pointed out that 24 other companies in the sector carried out mass sack of workers within the period, adding, “between the last Delegates’ Conference in 2015 and now, our industrial sector has witnessed redundancies in the following companies that have members affiliated to our association.”

Among the 24 companies listed are: Nigeria Distilleries Limited; Nestle Nigeria Plc; Cadbury Nigeria Plc; Flour Mills of Nigeria Limited; Seven-Up Bottling Company Limited; Sosaco Nigeria Limited; Dangote Flour Mills Limited; Ragolis Waters Ltd; Guinness Nigeria Plc; International Breweries Plc; Nigerian Breweries Plc; Fan Milk Nigeria Plc; and CWAY Food and Beverage Limited, among others.

He said: “The production cost has gone up but nothing was done in terms of financial support and tax relief by the government to cushion the effects of this, rather, we are subjected to different bans ranging from accessibility of forex to import raw materials to forced backward integration.

We are not opposed to backward integration in any form but its implementation was ill-time as it has led to massive redundancy in our industry

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