Nigeria is estimated to be losing about N428 billion annually to illicit trade in spirits and wines, according to the Director-General of the Spirits and Wines Association of Nigeria, Tony Okwoju.
The disclosure, reported by the News Agency of Nigeria, was made at the conclusion of a stakeholders’ workshop on combating illicit alcohol trade held in Abuja. Okwoju highlighted the scale of the problem, citing a 2024 survey which found that approximately 40% of spirits and wines sold in Nigeria originate from illegal sources.
He explained that illicit alcohol encompasses a range of activities, including smuggling, tax evasion, counterfeiting, and parallel market distribution. While counterfeit products account for a smaller portion of the market, they pose heightened health risks due to unsafe and unregulated production processes.
Industry stakeholders at the event raised concerns over the economic and public health implications of the widespread illicit trade. According to Okwoju, the prevalence of illegal products—estimated at two out of every five bottles in circulation—underscores the urgency for coordinated interventions to address the growing challenge.
The workshop, which attracted over 800 participants including regulators, policymakers, enforcement agencies, and industry operators, focused on developing practical strategies to curb the illicit market. The Managing Director of SWAN, Michael Ehindero, emphasized that illegal alcohol trade undermines legitimate businesses, erodes government revenue, and endangers consumer safety.
Participants identified several key drivers of illicit trade, including consumer demand for cheaper alternatives, regulatory loopholes, and taxation pressures. They also noted that counterfeit alcohol has been linked to serious health risks and, in some instances, fatalities.
Stakeholders stressed that addressing the issue will require stronger collaboration among regulators, improved enforcement mechanisms, and increased public awareness to discourage consumption of illicit products.
Despite these challenges, Nigeria’s spirits market continues to grow, driven by shifting consumer preferences and demographic trends. Bitters account for about 38% of the market, followed by whiskey and vodka at 15% each, and gin at 10%. While taste remains the primary factor influencing consumer choice, affordability plays a significant role, with average weekly spending estimated at around N7,614.
Industry experts noted that affordable packaging formats such as sachets and PET bottles have helped regulated brands remain competitive against informal market players. However, they warned that potential regulatory restrictions on these formats could unintentionally push more consumers toward unregulated and illicit alternatives if not carefully managed.
Overall, stakeholders agreed that tackling illicit alcohol trade is critical to protecting public health, safeguarding government revenue, and ensuring the sustainability of Nigeria’s formal beverage industry.
