By Merit Ibe
The Beer Sectoral Group (BSG) of the Manufacturers Association of Nigeria (MAN) has urged the Federal Government to review the current Ad Valorem tax model. Citing a 30 per cent revenue decline caused by inflation and forex instability, BSG Chairman and CEO of International Breweries, Mr Carlos Coutino, proposed a more stable inflation-adjusted tax alternative.
During a visit to Trade and Investment Minister, Dr Jumoke Oduwole, Coutino warned that the present excise duty structure burdens manufacturers still recovering from the 2023 naira devaluation. Coutino reaffirmed the industry’s commitment to responsible growth and policy compliance, emphasising the sector’s understanding of the government’s fiscal priorities.
He, however, raised concerns about the recent increases in excise duties, particularly under the Ad Valorem structure. According to him, the current regime places an undue burden on manufacturers, many of whom are still recovering from the macroeconomic shocks of the 2023 naira devaluation.
In her response, the Minister commended the group for its data-driven approach and its collaborative engagement style. She acknowledged the challenges presented and assured the delegation of the Ministry’s openness to stakeholder input in shaping reforms that are equitable, forward-looking, and in the national interest.
The meeting featured a technical presentation by PricewaterhouseCoopers (PwC), which provided compelling data and projections to highlight the implications of the current excise regime. Findings from the presentation showed a sharp decline in industry revenues by nearly 30 per cent, largely driven by inflation and foreign exchange instability. It also underscored the scale of the industry’s contributions, including its support of over 30,000 jobs and the stimulation of the local agricultural value chain through the sourcing of approximately 300 metric tonnes of grains.
The report also flagged affordability challenges, revealing that the average Nigerian now needs to work up to three hours to afford a bottle of beer.
In addition, there were strong indications that the current tax approach could result in over ₦425 billion in industry losses and a significant shortfall in government revenue projections.
Furthermore, the PwC report flagged public health risks, warning that high beer prices could unintentionally push consumers towards unsafe, unregulated alternatives.
Coutino was joined by other BSG members, including Abiola Laseinde, Executive Director of BSG; Temitope Oguntokun, Corporate Affairs & Regulatory Director at International Breweries; Uzo Odenigbo, Corporate Affairs Director at Nigerian Breweries Plc; and Rotimi Odusola, Corporate Relations Director at Guinness Nigeria Plc.
The visit was a strategic engagement and part of the sector’s commitment to deepening collaboration with the government and seeking alignment on policy matters that affect the sustainability of the beer industry.
The BSG further restated its commitment to responsible consumption, sustainability, and partnership with the government, stressing its role in job creation, agricultural development, and manufacturing, making the beer industry a vital contributor to Nigeria’s economy.
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