The federal government has been urged to urgently rescind its decision to raise excise duties, particularly under the Ad Valorem structure because this could be counter-productive.
This appeal was made by the Beer Sectoral Group (BSG) of the Manufacturers Association of Nigeria (MAN) during a visit to the Minister of Trade and Investment, Ms Jumoke Oduwole, at her office in Abuja on Wednesday.
The BSG is a sub-sectoral group under the Food, Beverage and Tobacco category of MAN, which is headed by Mr Carlos Coutino, who doubles as the chief executive of International Breweries Plc.
During the visit, the group said though it understands the fiscal priorities of the government, argued that such an increase places an undue burden on manufacturers, many of whom are still recovering from the macroeconomic shocks of the 2023 Naira devaluation.
While presenting a report from PricewaterhouseCoopers (PwC), the team informed the Minister that any additional pressure on the sector could affect the over 30,000 people employed by beer makers in the country.
It was revealed that the current tax approach could result in over N425 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 toward unsafe, unregulated alternatives.
The BSG delegation appealed for a review of the current Ad Valorem model and proposed more predictable, inflation-adjusted alternatives aimed at ensuring long-term industry viability, consumer protection, and continued government revenue.
The group 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.
In her remarks, Ms Oduwole praised the team 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.
Other members of the BSG team at the meeting were the Executive Director of BSG, Ms Abiola Laseinde; the Corporate Affairs and Regulatory Director of International Breweries, Ms Temitope Oguntokun; the Corporate Affairs Director of Nigerian Breweries Plc, Mr Uzo Odenigbo; and the Corporate Relations Director of Guinness Nigeria Plc, Mr Rotimi Odusola.