The Nigerian Breweries Opposes Proposed Excise Duty Hike and Highlights Socio-Economic Challenges
The Nigerian Breweries, NB Plc, has expressed its disapproval of the federal government’s proposed increase in excise duty on brewed products in the country. The company has stated that the hike would add to the existing headwinds and have implications for pricing.
During a pre-Annual General Meeting media briefing held in Lagos, the Managing Director/CEO of NB, Hans Essaadi, highlighted some of the socio-economic challenges that the incoming government has to address. These challenges include inflationary pressure, rising interest rates, foreign exchange rates, the implementation of the naira re-design/cashless policy, and others.
Essaadi emphasized that the business outlook for 2023 and beyond is dependent on the government meeting the current excise roadmap (2022 to 2024). He stated that a steep and sudden increase in excise duty would be counterproductive and ultimately erode investors’ confidence. Therefore, a predictable and sustained excise roadmap is a significant success factor for increased government revenue.
Furthermore, Essaadi indicated that 2023 is likely to be another challenging year due to the expectations of an excise duty increase, which would result in price hikes. The company is already engaging with the authorities on this matter. Additionally, the forex challenges faced by the company and the cash crunch faced across the country have had a considerable impact on commercial and social activities, with the brewery sub-sector not being left out.
Despite these challenges, the company remains committed to navigating the short-term challenges to enable the delivery of long-term sustainable value to its shareholders.
