The Food, Beverage, and Tobacco Senior Staff Association (FOBTOB) has expressed concern over increasing job losses and rising operational costs facing Nigeria’s food and beverage industry.
The National President of FOBTOB, Mr. Jimoh Oyibo, made this statement while speaking with journalists on the sidelines of the just-concluded 114th Session of the International Labour Conference in Geneva, Switzerland.
Oyibo said the sector was facing multiple challenges, including dependence on imported raw materials and the impact of foreign exchange volatility.
According to him, most companies in the food and beverage sector rely heavily on imported raw materials, making them vulnerable to fluctuations in exchange rates and rising production costs.
He added that recent regulatory measures affecting sachet packaging and products below 200 millilitres had also negatively impacted businesses and employment within the industry.
“Most of our companies depend on imported raw materials, and the exchange rate situation is biting harder,” he stated.
He explained that this was creating enormous pressure on businesses across the sector.
Oyibo also noted that restrictions on smaller pack sizes had already led to job losses, with many workers being pushed into the labor market.
“As I speak to you, many of our members have been thrown into the labor market.
“We are engaging the government to find ways to resolve this situation,” he said.
He described smaller package sizes as a major revenue source for manufacturers, emphasizing that many consumers preferred affordable products due to declining purchasing power.
“Not everybody wants to buy large packs. The smaller pack sizes are the cash cow for many companies and workers in that sub-sector,” he explained.
The labour leader pointed out that poor infrastructure, high energy costs, and weak consumer purchasing power further worsened the operating environment for businesses.
“Are you talking about roads, energy, or the purchasing power of workers? These are significant challenges facing every business, especially those in the food sector,” he said.
Regarding workers’ welfare, Oyibo stated that the current national minimum wage of N70,000 was inadequate given the prevailing economic realities and rising living costs.
“There is no amount that can truly quantify labour, but I know that in this economy, N70,000 cannot suffice,” he remarked.
He called for wage negotiations to better reflect business realities and encouraged employers to improve workers’ take-home pay where possible.
“We are mindful of the business environment. We will continue to urge employers to enhance the welfare and earnings of our members,” he affirmed.
Oyibo urged workers to embrace continuous learning and skills development to stay relevant amid increasing technological changes and automation.
“One thing workers can do is upgrade themselves. When you see changing trends, adapt accordingly to avoid becoming unemployable,” he advised.
He added that the union regularly organized zonal meetings to educate members on career development, retirement planning, and strategies for adapting to future workplace challenges.
According to him, these engagements help workers prepare for technological changes, safeguard their careers, and build sustainable livelihoods beyond active employment.
