{"id":19295,"date":"2026-06-15T01:16:00","date_gmt":"2026-06-15T01:16:00","guid":{"rendered":"https:\/\/edumarkng.com\/news\/food-industry-on-brink-as-rising-costs-forex-crisis-trigger-mass-layoffs\/"},"modified":"2026-06-15T01:16:00","modified_gmt":"2026-06-15T01:16:00","slug":"food-industry-on-brink-as-rising-costs-forex-crisis-trigger-mass-layoffs","status":"publish","type":"post","link":"https:\/\/edumarkng.com\/news\/food-industry-on-brink-as-rising-costs-forex-crisis-trigger-mass-layoffs\/","title":{"rendered":"Food industry on brink as rising costs, forex crisis trigger mass layoffs"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2026\/05\/Food.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Food industry on brink as rising costs, forex crisis trigger mass layoffs\" title=\"Food industry on brink as rising costs, forex crisis trigger mass layoffs\" \/><\/div><p>Food industry on brink as rising costs, forex crisis trigger mass layoffs, <\/p>\n<p><em>\u2022Sector faces collapse under economic crunch, Labour laments<\/em><\/p>\n<p><strong>By Victor Ahiuma-Young, GENEVA<\/strong><\/p>\n<p>Nigeria\u2019s\u00a0food and beverage industry is facing worsening employment crisis as rising production costs, foreign exchange volatility and regulatory measures continue to force companies to cut jobs and scale down operations.<\/p>\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.vanguardngr.com\/2026\/06\/bullets-before-ballots-insecurity-threatens-2027-polls-5272-killed-in-5-months\/\" type=\"post\">Bullets Before Ballots: Insecurity threatens 2027 polls \u2013 5,272 killed in 5 months<\/a><\/p>\n<p>Consequently, the Food, Beverage and Tobacco Senior Staff Association, FOBTOB, has raised the alarm over increasing layoffs across the sector, warning that unless urgent interventions were implemented, more workers could be thrown into the labour market, while some businesses might be forced to shut down.<\/p>\n<p>The union said the combined impact of soaring energy costs, poor infrastructure, weak consumer purchasing power and policy restrictions on certain product categories has placed unprecedented pressure on manufacturers struggling to remain afloat.<\/p>\n<p>Speaking with journalists on the sidelines of the just concluded 114th Session of the International Labour Conference in Geneva, FOBTOB President, Oyibo Jimoh, said the industry\u2019s dependence on imported raw materials had made it particularly vulnerable to exchange rate fluctuations and escalating production costs.<\/p>\n<p>He said:\u00a0 \u201cMost 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.\u00a0<\/p>\n<p>\u201cThe worsening foreign exchange situation has significantly increased the cost of doing business, compelling many companies to review their operations and workforce strength to survive.\u201d<\/p>\n<p>He expressed particular concern over restrictions on sachet products and beverages packaged in containers below 200 millilitres, saying the policy had already led to job losses and could further threaten the survival of a critical segment of the industry.<\/p>\n<p>\u201cAs I am talking to you, many of our members have been thrown into the labour market. We are still engaging government to see how best we can resolve it,\u201d he stated.<\/p>\n<p>Jimoh argued that smaller package sizes remain the preferred choice for many consumers whose purchasing power has been severely eroded by inflation and economic hardship.<\/p>\n<p>\u201cNot 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,\u201d he warned.<\/p>\n<p>The FOBTOB President further noted that manufacturers were grappling with multiple operational challenges ranging from poor road infrastructure and unstable energy supply to declining consumer demand.<\/p>\n<p>\u201cThe 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,\u201d he said.<\/p>\n<p>On workers\u2019 welfare, Jimoh maintained that the current national minimum wage of N70,000 was grossly inadequate given the prevailing economic realities and the rising cost of living.<\/p>\n<p>\u201cThere is no amount that can truly quantify labour, but in this economy, the national minimum wage of N70,000 cannot go anywhere,\u201d he lamented.<\/p>\n<p>He called on employers to improve workers\u2019 remuneration where possible while balancing wage reviews against the economic pressures confronting businesses and investors.<\/p>\n<p>Jimoh also urged workers to embrace continuous training and skills development to remain relevant in an increasingly technology-driven workplace.<\/p>\n<p>\u201cOne thing workers can do is upgrade themselves. When you see changing trends, move along with them and avoid making yourself unemployable,\u201d he advised.<\/p>\n<p>He disclosed that FOBTOB would continue to educate its members through zonal meetings and capacity-building programmes focused on career advancement, retirement planning and adaptation to emerging workplace realities.<\/p>\n<p>He reaffirmed FOBTOB\u2019s commitment to protecting workers\u2019 interests while supporting policies capable of ensuring the long-term sustainability and growth of Nigeria\u2019s food and beverage industry.<\/p>\n<p><a href=\"http:\/\/vanguardngr.com\/\">Vanguard News<\/a><\/p>\n<p>The post <a href=\"https:\/\/www.vanguardngr.com\/2026\/06\/food-industry-on-brink-as-rising-costs-forex-crisis-trigger-mass-layoffs-2\/\">Food industry on brink as rising costs, forex crisis trigger mass layoffs<\/a> appeared first on <a href=\"https:\/\/www.vanguardngr.com\/\">Vanguard News<\/a>.<\/p>\n<p>, <\/p>\n<p>&#8220;Smaller package sizes remain the preferred choice for many consumers whose purchasing power has been severely eroded&#8221;<\/p>\n<p>The post <a href=\"https:\/\/www.vanguardngr.com\/2026\/06\/food-industry-on-brink-as-rising-costs-forex-crisis-trigger-mass-layoffs-2\/\">Food industry on brink as rising costs, forex crisis trigger mass layoffs<\/a> appeared first on <a href=\"https:\/\/www.vanguardngr.com\/\">Vanguard News<\/a>.<\/p>\n<p>, <!-- no image -->, Oboh, {authorlink},, , Vanguard News, June 15, 2026, 1:16 am<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Food industry on brink as rising costs, forex crisis trigger mass layoffs, \u2022Sector faces collapse under economic crunch, Labour laments By Victor Ahiuma-Young, GENEVA Nigeria\u2019s\u00a0food and beverage industry is facing worsening employment crisis as rising production costs, foreign exchange volatility and regulatory measures continue to force companies to cut jobs and scale down operations. Read [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19296,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"fifu_image_url":"https:\/\/cdn.vanguardngr.com\/wp-content\/uploads\/2026\/05\/Food.jpg","fifu_image_alt":"","footnotes":""},"categories":[2147,2148,8,16],"tags":[],"class_list":["post-19295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-food","category-food-security","category-news","category-top_stories"],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Food industry on brink as rising costs, forex crisis trigger mass layoffs - EduNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/edumarkng.com\/news\/food-industry-on-brink-as-rising-costs-forex-crisis-trigger-mass-layoffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Food industry on brink as rising costs, forex crisis trigger mass layoffs - EduNews\" \/>\n<meta property=\"og:description\" content=\"Food industry on brink as rising costs, forex crisis trigger mass layoffs, \u2022Sector faces collapse under economic crunch, Labour laments By Victor Ahiuma-Young, GENEVA Nigeria\u2019s\u00a0food and beverage industry is facing worsening employment crisis as rising production costs, foreign exchange volatility and regulatory measures continue to force companies to cut jobs and scale down operations. 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