The Federal Government is to review the 500 per cent tariff on local beverages very soon, the Minister of Labour and Employment, Dr. Chris Ngige, has disclosed
The move is to prevent a total collapse of the beverages industry in the country and increase in employment rate.
According to a statement issued by the Director of Press in the ministry, Mr. Samuel Olowokere, on Friday in Abuja, Ngige made the disclosure when members of the National Union of Food, Beverage and Tobacco Joint Employers and Workers Association visited him in his office.
The union was in his office to appeal for a review of the government’s policy.
His words: “This will save the sector from imminent collapse and forestall the consequent loss of about two hundred thousand jobs.
“You have written to the Federal Government through me that the increase in excise duty on alcohol and beverages will create job losses.
“Because once you add a new cost and pass it on, there will be consumer resistance, resulting in low patronage, whereas the products coming from overseas that are being smuggled in which are cheap, will take over the market. It is a statement of fact.
“I have passed your complaints and luckily we have a listening President who wants the good of all Nigerians.
“The President will definitely ask the Minister of Finance and the economic management team to review the tariff.”
Ngige gave the assurance that the government would not do anything that would increase unemployment in the country.
He said that was the reason that the need to create job was emphasised in the Economic and Recovery Growth Plan (ELGP) of the Federal Government.
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He stated further: “This is not to say that we do not know that in some places available jobs have more than available staff members to match them but this is a compassionate .
“The President does not want to throw many families into anguish. The President always said that he was a salary earner in all his working life.
“You can also see that we did not place an embargo on recruitment as we used to have years ago even while we were under recession.
“The Federal Government has been replacing staff members who exited as well as creating new jobs in the public sector. But this has to be complemented with the private sector jobs to have a full blend,” the minister said.
Speaking earlier, Mr. Mike Olarenwaju, acting general secretary of the union who led the delegation to the minister’s office, argued that the 500 per cent tariff increase by the Ministry of Finance on their products was counter-productive.
“It will kill investments; it is already creating palpable fear in the operators…
“We also appeal to you to prevent the loss of about 200, 000 jobs with the attendant economic and social consequences. We have run to you as our last hope,” he said.