The National President of FOBTOB, Mr Jimoh Oyibo, said this while speaking with newsmen 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 said 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. ”
It is creating enormous pressure on businesses across the sector,” he said.
Oyibo added that the restrictions on smaller pack sizes had already resulted in job losses, adding that many workers had been thrown into the labour market.
“As I am talking to you, many of our members have been thrown into the labour market.
“We are engaging government to see how best we can resolve the situation,” he said.
He described smaller package sizes as a major revenue source for manufacturers, noting that many consumers preferred affordable products due to declining purchasing power.
“Not everybody wants to go for the big pack sizes. The smaller pack sizes are the cash cow for many companies and workers in that sub-sector,” he said.
The labour leader said poor infrastructure, high energy costs and weak consumer purchasing power were further worsening the operating environment for businesses.
“Are you talking about roads, energy or the purchasing power of workers? There are great challenges facing every business, particularly those operating in the food sector,” he said.
On workers’ welfare, he said the current national minimum wage of N70,000 was inadequate in view of prevailing economic realities and rising living costs.
“There is no amount that can truly quantify labour, but I know that in this economy, the N70,000 national minimum wage cannot go anywhere,” he said.
He, however, noted the need for wage negotiations to reflect business realities, adding that employers should be encouraged to improve workers’ take-home pay where possible.
“We are mindful of the business terrain. We will continue to encourage employers to see how best they can improve the welfare and earnings of our members,” he said.
Oyibo also urged workers to embrace continuous learning and skills development to remain relevant amid increasing technological changes and automation in workplaces.
“One thing workers can do is upgrade themselves. When you see changing trends, move along with them and avoid making yourself unemployable,” he said.
He said the union regularly organised zonal meetings to educate members on career development, retirement planning and strategies for adapting to future workplace challenges.
According to him, such engagements help workers prepare for technological changes, safeguard their careers and build sustainable livelihoods beyond active employment years.
