Food industry faces mass layoffs amid rising costs and foreign‑exchange crisis.

By Victor Ahiuma‑Young

GENEVA, SWITZERLAND — Nigeria’s food and beverage sector is confronting a deepening employment crisis as rising production costs, foreign‑exchange volatility, and regulatory changes force companies to cut jobs and scale back operations.

The Food, Beverage and Tobacco Senior Staff Association (FOBTOB) has warned that without urgent intervention, more workers could be laid off and some businesses may have to shut down. The union cited soaring energy prices, inadequate infrastructure, weak consumer purchasing power, and policy restrictions on certain product categories as the main drivers of pressure on manufacturers.

Speaking to journalists after the 114th Session of the International Labour Conference in Geneva, FOBTOB President Oyibo Jimoh highlighted the sector’s dependence on imported raw materials, which makes it especially vulnerable to exchange‑rate swings and rising production costs. “Most of our companies in the sector depend on imported raw materials. If you narrow it down to exchange rates, it is biting harder, and that is understandable. The worsening foreign‑exchange situation has significantly increased the cost of doing business, compelling many companies to review their operations and workforce strength to survive,” he said.

Jimoh expressed particular concern over restrictions on sachet products and beverages packaged in containers below 200 ml, noting that the policy has already led to job losses and could threaten the survival of a critical segment of the industry. “As I am talking to you, many of our members have been thrown into the labour market. We are still engaging the government to see how best we can resolve it,” he stated.

He argued that smaller package sizes remain the preferred choice for many consumers whose purchasing power has been severely eroded by inflation and economic hardship. “Not everybody wants to go for the big pack sizes. The smaller pack sizes are the cash cow. Allowing that policy to continue could close that sub‑sector,” he warned.

The FOBTOB President also noted that manufacturers are grappling with multiple operational challenges, from poor road infrastructure and unstable energy supply to declining consumer demand. “The economy is very tough for every business. Whether it is roads, energy or purchasing power, there are great challenges facing companies, particularly in the food sector,” he said.

On workers’ welfare, Jimoh maintained that the current national minimum wage of N70,000 is grossly inadequate given prevailing economic realities and the rising cost of living. “There is no amount that can truly quantify labour, but in this economy, the national minimum wage of N70,000 cannot go anywhere,” he lamented. He called on employers to improve workers’ remuneration where possible while balancing wage reviews against the economic pressures confronting businesses and investors.

Jimoh urged workers to embrace continuous training and skills development to remain relevant in an increasingly technology‑driven workplace. “One thing workers can do is upgrade themselves. When you see changing trends, move along with them and avoid making yourself unemployable,” he advised.

He disclosed that FOBTOB will continue to educate its members through zonal meetings and capacity‑building programmes focused on career advancement, retirement planning and adaptation to emerging workplace realities. The association reaffirmed its commitment to protecting workers’ interests while supporting policies that ensure the long‑term sustainability and growth of Nigeria’s food and beverage industry.

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