Nigerian Breweries Plc reported that the brewed products sector returned to profit in 2025 despite ongoing pressure on consumer purchasing power. Chairman Juliet Anammah said the sector's volume fell by a single‑digit percentage, with weaker performance in the second half of the year, but financial results improved thanks to pricing actions and consumer activations. She noted that macro‑economic reforms and stabilisation measures lifted key indicators, yet translating these gains into higher household incomes remained difficult.
Anammah warned that recent Middle East geopolitical tensions have pushed crude oil prices above 100 dollars per barrel, raising energy costs and heightening foreign‑exchange risks, supply‑chain disruptions and inflationary pressure. The Central Bank of Nigeria projects a 4.49 per cent GDP growth and an average inflation rate of 12.94 per cent for 2026, though infrastructure gaps, insecurity, adverse weather and lower oil output could further constrain performance. She expressed concern over a proposed tax‑stamp regime for excise verification, saying the industry has complied with existing rules and additional taxes or complex systems could erode productivity and reverse recent gains. "The industry is still recovering from volume declines recorded in recent years, and additional regulatory burdens may undermine this recovery," she said.
The company will celebrate its 80th anniversary of operations in Nigeria in 2026. Managing Director Thibaut Boidin echoed the challenges, citing declining consumer purchasing power and external shocks, and said the firm is engaging with the Manufacturers Association of Nigeria and other groups to influence fiscal policy. (NAN)
The most pressing issue is the looming tax‑stamp regime, which could undo the sector's hard‑won profitability. While the industry managed a rebound through strategic pricing and a premium portfolio, added excise verification costs risk squeezing margins and slowing growth.
Underlying the concern are broader macro‑economic strains: inflation hovering near 13 per cent, oil prices above $100 a barrel and projected GDP growth of just 4.49 per cent. These factors already limit household spending, and any extra fiscal burden may further depress demand for brewed products.
For ordinary Nigerians, especially low‑income earners, higher taxes could translate into steeper beer prices, reducing access to a popular leisure beverage and potentially impacting informal traders who rely on its sale.
The episode reflects a recurring pattern where regulatory proposals, even when well‑intentioned, clash with an economy still recovering from inflationary pressures and external shocks, highlighting the delicate balance policymakers must strike to support both revenue goals and sectoral resilience.
💡 NaijaBuzz is an AI-assisted news aggregator. This content is curated from third-party sources — NaijaBuzz is not the original publisher and is not responsible for the accuracy of source reporting. The NaijaBuzz Take is AI-assisted editorial opinion only, not established fact. All persons mentioned are presumed innocent until proven guilty by a court of competent jurisdiction. NaijaBuzz does not endorse the views expressed in source articles.
