Nigeria is losing an estimated N428 billion annually to illicit trade in spirits and wines, according to the Director-General of the Spirits and Wines Association of Nigeria (SWAN), Tony Okwoju.
According to the News Agency of Nigeria (NAN), the DG disclosed this at the end of a one-day stakeholders’ workshop on combating illicit trade in the spirits and wines industry held in Abuja.
Okwoju noted that the scale of illegal alcohol trade remains significant, citing a 2024 survey which found that about 40% of spirits and wines sold in Nigeria are illicit.
Industry stakeholders warned that the widespread presence of illicit alcohol poses risks to both the economy and public health.
He explained that illicit trade includes smuggled, tax-evaded, counterfeit and parallel market products.
He noted that while counterfeit alcohol represents a smaller share, it carries higher health risks due to unsafe production processes.
He added that the figures highlight the urgent need for coordinated efforts to curb the growing illicit market.
The workshop brought together over 800 participants, including regulators, policymakers, enforcement agencies and industry operators, to address the challenge.
SWAN Managing Director, Michael Ehindero, said the event focused on identifying practical strategies to combat illicit trade.
He stressed that illegal alcohol undermines legitimate businesses, reduces government revenue and threatens consumer safety.
Participants highlighted key drivers of illicit trade, including demand for cheaper products, regulatory gaps and tax pressures.
They also noted that counterfeit alcohol has been linked to serious health risks and fatalities in some cases.
Ehindero emphasised that tackling the issue requires stronger collaboration, improved enforcement and increased consumer awareness.
Nigeria’s spirits market continues to expand, driven by changing consumer preferences and demographic trends.
Affordable packaging formats such as sachets and PET bottles have helped regulated brands compete with informal market players.
However, industry experts warn that potential regulatory restrictions on these formats could shift demand further toward unregulated and illicit products if not carefully managed.