Funmi Ogundare 

The Beer Sectoral Group (BSG) has appealed to the federal government to review the country’s  current excise duty regime, warning that the existing Ad Valorem structure could cost the industry over N425 billion in losses and trigger a 30 per cent decline in revenues.

The call was made during a meeting between the BSG and the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, held at the Ministry’s headquarters in Abuja. The visit was part of the group’s strategic efforts to align with government policy and sustain long-term viability in the face of mounting economic pressure.

Led by BSG Chairman and CEO of International Breweries Plc, Carlos Coutino, the delegation expressed concern over the unsustainable tax burden placed on beer manufacturers, many of whom are still recovering from the 2023 naira devaluation and broader macroeconomic instability.

A technical report presented by PricewaterhouseCoopers (PwC) during the meeting revealed that current excise policies have not only eroded industry revenues but are also straining affordability. The data showed that the average Nigerian now needs to work up to three hours to afford a single bottle of beer, raising alarm over public health risks from a potential shift toward unsafe, unregulated alternatives.

PwC’s analysis also highlighted the sector’s economic footprint, noting its support of more than 30,000 jobs and significant contributions to the local agricultural value chain through the procurement of approximately 300 metric tons of grains. The report also warned that continued application of the Ad Valorem model may reduce government revenue in the long term, contrary to fiscal objectives.

The chairman proposed a shift to more predictable, inflation-adjusted alternatives that protect both the industry and consumers while sustaining government revenue. He  reaffirmed the organisation’s commitment to responsible consumption, regulatory compliance, and national development through job creation, local sourcing, and manufacturing.

In her response, Oduwole commended the BSG’s data-driven approach and collaborative tone, assuring the delegation that the ministry remains open to engaging stakeholders in crafting balanced, equitable reforms.

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