By Teddy Nwanunobi
Nigerian Breweries, NB, yesterday, expressed concern over a proposed tax stamp regime for excise verification and product tracking.
According to the Chairman of the Board, Nigerian Breweries Plc, Juliet Anammah, the brewed products sector recorded a return to profitability in 2025 despite persistent pressure on consumer purchasing power, Nigerian Breweries Plc has said.
Ms Anammah, who stated this in the company’s 2025 annual reports and accounts,
noted that while macroeconomic reforms and stabilisation measures improved key indicators in 2025, translating these gains into better household incomes and living standards remained a major challenge.
She added that cost pressures, cautious consumer spending and intense competition led to a single-digit volume decline across the sector, with performance in the second half of the year weaker than the first.
Nevertheless, she stated that the sector recorded a strong rebound in financial performance driven mainly by pricing actions and consumer activations.
“After consecutive years of net losses, the published results of all players showed that 2025 marked a return to profitability for the sector, and our company was a big example of this sectoral rebound.
“We sustained our market leadership position driven by increased competitiveness through appropriate pricing, our premium portfolio play, enhanced route to market and sustained relationship with trade partners,” she said.
For 2026, the NB board chair said that initial projections showed the year would deliver macroeconomic stability and growth following government reforms.
Ms Anammah, however, warned that recent geopolitical tensions in the Middle East had disrupted the outlook, pushing crude oil prices above 100 dollars per barrel and increasing energy costs in Nigeria.
She said the development could heighten foreign exchange risks, trigger supply chain disruptions and sustain inflationary pressures.
Ms Anammah referenced projections by the Central Bank of Nigeria, CBN, which forecast a 4.49 per cent gross domestic product growth and average inflation of 12.94 per cent for 2026 under baseline assumptions.
The NB board chair added that risks such as infrastructure gaps, insecurity, adverse weather conditions and lower oil output could further constrain performance. She also expressed concern over a proposed tax stamp regime for excise verification and product tracking.
According to her, the sector has maintained compliance with existing excise regulations, warning that additional taxes or complex systems could weaken 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.
Ms Anammah revealed that the company would also mark its 80th anniversary of operations in Nigeria in 2026, celebrating decades of contributions to shareholders, government and communities.
The managing director of the company, Thibaut Boidin, during the company’s 2026 pre-annual general meeting, noted that the brewing industry continued to face significant headwinds, particularly from declining consumer purchasing power driven by persistent inflationary pressures.
According to him, both official and perceived inflation levels have constrained consumer spending, contributing to a decline in the overall beer market in recent years.
He added that external shocks, including tensions in the Middle East, had further impacted Nigeria’s economy, exacerbating existing challenges.
On policy engagement, Mr Boidin said the company was working closely with stakeholders, including the Manufacturers Association of Nigeria and industry groups, to shape fiscal policies affecting the sector.