Nigeria: Nigerian Breweries urging for homegrown regulatory solutions

Nigerian Breweries Plc has urged the Federal Government to adopt homegrown regulatory solutions that support industrial growth, warning against the proposed introduction of foreign tax stamps on excisable goods, The Nation Online reported on October 13.

The company said the plan could duplicate existing monitoring systems, increase production costs, and hurt consumers, stressing the need to strengthen local compliance frameworks instead.

Speaking during a media parley in Lagos, Corporate Affairs Director, Nigerian Breweries Plc, Uzodinma Odenigbo, said the industry already operates under robust excise monitoring mechanisms, making a foreign tax stamp unnecessary.

�Our industry is one of the most compliant in Nigeria. Customs officers have dedicated workstations in our breweries; FIRS monitors production through e-invoicing, and we use the Excise Reporting System for real-time data. Introducing a foreign tax stamp is unnecessary, costly, and counterproductive,� Odenigbo said.

He explained that beer production in Nigeria is highly capital-intensive, with full traceability from manufacturing to retail.

According to him, the proposed tax stamp system, already proven problematic in other African countries, could drive up operating costs, increase product prices, and hurt consumers.

He said: �In Tanzania, productivity dropped by 40 per cent after tax stamps were introduced, while Mozambique recorded a 20 per cent decline. These are clear warning signs. When costs rise, consumers ultimately bear the brunt.

�What we need are solutions tailored to Nigeria�s realities, not imported models that ignore our environment�.

Odenigbo maintained that both the Nigeria Customs Service (NCS) and Federal Inland Revenue Service (FIRS) already have digital systems that guarantee transparency in excise collection. Importing a foreign-managed technology, he warned, could trigger capital flight and expose the sector to external dependencies.

�We should strengthen local compliance structures instead of replacing them. Foreign systems come with high costs and long-term maintenance risks,� he said.

According to him, the company and other manufacturers under the Manufacturers Association of Nigeria (MAN) are engaging government agencies, including the Federal Ministry of Finance, FIRS, and Ministry of Industry, Trade and Investment, to demonstrate that current monitoring mechanisms already ensure full visibility and accountability.

�Our objective is to work collaboratively with government to design policies that enhance competitiveness rather than weaken it,� Odenigbo explained.

He also commended the media for its role in driving public understanding of regulatory and economic issues, describing journalists as �critical partners in national development.�

Speaking on the company�s sustainability agenda, the company�s Sustainability and CSR Manager, Oluseye Olokun, highlighted ongoing environmental and social initiatives under its global �Brew a Better World� framework.

He said the company�s sustainability efforts are anchored on three pillars, including environmental impact reduction, social investment, and responsible consumption, aimed at achieving net-zero carbon emissions in production by 2030, and across the value chain by 2040.

�We are decarbonising our operations through solar expansion in our breweries and are targeting 100 percent renewable energy in our Lagos and Ama plants,� he said.

Olokun added that four of the company�s operational sites, including Lagos and Kaduna, are located in water-stressed regions, prompting the launch of a water balancing project that has already seen the planting of over 300,000 trees, with a target of one million by 2030.

Beyond environmental initiatives, Olokun said the company continues to empower local communities through entrepreneurship and social development. Since the launch of the Nigerian Breweries Empowerment Programme in 2019, over 2,300 beneficiaries, he said, have received vocational training, start-up tools, and business support.

Earlier this year, the company, he noted, commissioned an Entrepreneurship Development Centre in Kaduna to further strengthen youth empowerment and skills development.

Olokun also disclosed that the Heineken Africa Foundation, in partnership with Nigerian Breweries, is investing �2.25 million over three years to support smallholder farmers in Nigeria, enabling them to transition from subsistence to commercial production.

�Our sustainability strategy is not just about the environment; it�s also about people, prosperity, and resilience,� he said.

As part of its responsible drinking campaign, the company, he said, continues to promote moderation through nationwide initiatives such as �Don�t Drink and Drive� in collaboration with the Federal Road Safety Commission (FRSC).

Olokun added that all NB products now carry clear labels indicating �18+ only,� �Not for pregnant women,� and �Don�t drink and drive,� as part of efforts to enhance consumer awareness and safety.

Reaffirming Nigerian Breweries� leadership in Nigeria�s manufacturing space, Odenigbo said the company, established in 1946, will mark 80 years of operations in 2026, maintaining about 65 per cent market share and over 55 per cent share of voice.

He cited the company�s acquisition of Distell Wines and Spirits in 2023 as part of its diversification drive, with local production now taking place at its Ibadan brewery.

�Our reusable glass bottles and crates remain central to our circular economy model, but theft and destruction undermine our sustainability goals. We urge the public to help protect this shared resource,� he said.

Odenigbo concluded by reaffirming the company�s commitment to continued engagement with stakeholders, noting that partnership and transparency will remain central to its long-term growth.

�From the Maltina Teacher of the Year to our renewable energy investments � these are examples of how we are brewing a better world. Partnership with purpose is what has taken us this far, and it�s what will take us into the future,� he said.