The Chief Executive Officer of Nigerian Breweries Plc, Thibaut Boidin, has warned that the Nigerian government’s proposed tax stamp policy could completely wipe out profits in the brewing industry and potentially destabilise the sector.
Boidin issued the warning during the company’s 80th pre-Annual General Meeting media briefing in Lagos, where he emphasised the need for policy predictability and fiscal stability to sustain manufacturing investments and support economic growth in Nigeria.
While acknowledging the government’s efforts to increase revenue through fiscal reforms, the CEO cautioned that some policy measures could create serious unintended consequences for industries already facing economic challenges.
Concerns over proposed tax stamp policy
A tax stamp is a regulatory tool that requires manufacturers of excisable products—such as alcohol, tobacco, and sugary drinks—to attach high-security labels or digital codes to their products as proof that the required taxes have been paid.
According to Boidin, such measures are typically introduced to combat illicit manufacturing and counterfeiting, especially in industries where illegal production is widespread.
However, he argued that Nigeria’s formal brewing sector does not face a significant problem with illicit production, making the policy unnecessary for the industry.
“Tax stamp is a way to control illicit production. It has been announced that a tax stamp will be implemented in Nigeria. This applies to manufacturers that are impacted by a lot of illicit production. Here, it is zero illicit production,” he stated.
Industry profits at risk
Boidin warned that introducing tax stamps for brewing companies could have severe financial consequences, potentially eliminating industry profitability entirely.
“The impact is a 100% decrease in the profits generated by the industry. We made a calculation, it is huge,” he said.
Beyond reducing profitability, the CEO added that the policy could also lower government revenue from the sector and trigger broader economic disruption.
“It means for the government, zero revenue from where we are today. It means also that the full industry will collapse,” he warned.
He further noted that up to three million jobs directly and indirectly linked to the brewing industry could be affected if the sector experiences a significant downturn.
Nigerian Breweries returns to profitability
Boidin’s remarks come as Nigerian Breweries Plc recently reported a strong financial rebound in 2025 despite ongoing economic pressures.
The company recorded a pre-tax profit of ₦161.06 billion for the 2025 financial year, recovering from a ₦182.9 billion loss in 2024 as revenue grew significantly.
Key highlights from the company’s financial performance include:
- Full-year revenue: ₦1.5 trillion, representing a 35.32% year-on-year increase
- Domestic sales: ₦1.464 trillion, accounting for 99.83% of total volume
- Export sales: ₦2.4 billion
- Cost of sales: ₦902.2 billion
- Gross profit: ₦565.1 billion, rising 76.67% from ₦319.9 billion in 2024
The group also recorded ₦4.1 billion in other income, mainly from scrap sales and gains from the disposal of property, plant, and equipment.
Economic pressures remain
Despite the improved financial performance, Boidin noted that the business environment remains highly volatile and complex.
He explained that recent government policies—including foreign exchange reforms, petrol subsidy removal, and tax changes—have created short-term economic fluctuations.
“Although in 2025 the macroeconomic environment was a bit more stable than in previous years, we remain dependent on FX, and purchasing power remains under pressure,” he said.
The CEO also pointed out that global geopolitical tensions in the Middle East and high inflation levels have continued to reduce consumer spending, affecting beer consumption in Nigeria.
Meanwhile, the company’s Finance Director, Maria Karaseva, attributed the company’s return to profitability partly to better cost management and reduced finance expenses following its 2024 rights issue.
Wider concerns in the manufacturing sector
The concerns raised by Thibaut Boidin reflect broader anxieties within Nigeria’s manufacturing sector.
Industry stakeholders have expressed worries about the government’s decision to proceed with the tax stamp system for excisable products, warning that the policy could impose additional operational costs and regulatory burdens on manufacturers.
Although the federal government has not yet announced an official implementation date, the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, recently held discussions with industry stakeholders to inform them about the planned rollout.
Stakeholders say the outcome of these consultations will be crucial in determining how the policy affects Nigeria’s brewing and manufacturing industries in the coming years.
