Thibaut Boidin, Chief Executive Officer of Nigerian Breweries Plc, has warned that the Federal Government’s proposed tax stamp policy could wipe out profits across Nigeria’s brewing industry and destabilise the sector.
Speaking at the company’s 80th pre-Annual General Meeting (AGM) media briefing in Lagos, Boidin said the measure could lead to a 100 per cent erosion of industry profits if implemented.
He stressed that while government efforts to boost revenue are understandable, policy consistency and fiscal stability are critical for manufacturers operating in an already challenging environment.
A tax stamp is a regulatory system that requires excisable goods such as alcohol and tobacco to carry secure labels or digital codes confirming that duties have been paid. The policy is typically used to combat illicit production and counterfeiting.
However, Boidin argued that such concerns are minimal within Nigeria’s formal brewing sector.
“Tax stamps are designed to address illicit production, but in our industry, that risk is virtually non-existent,” he said.
According to him, imposing the policy on brewers could have far-reaching consequences beyond profitability.
“The impact is a 100 per cent drop in industry profits. It also means zero revenue for government from the sector and the risk of a full industry collapse,” he warned.
He added that up to three million jobs linked directly and indirectly to the brewing value chain could be at risk if the sector contracts significantly.
The warning comes as Nigerian Breweries recently returned to profitability. The company posted a pre-tax profit of N161.06 billion for the 2025 financial year, rebounding from a loss of N182.9 billion in 2024, supported by strong revenue growth.
Revenue rose by 35.32 per cent year-on-year to N1.5 trillion, driven largely by domestic sales, which accounted for over 99 per cent of total volume.
Boidin noted that broader economic reforms, including foreign exchange adjustments, fuel subsidy removal, and tax changes, have contributed to a volatile operating environment. He also pointed to inflation and weakened consumer purchasing power as factors weighing on demand.
Industry stakeholders have similarly raised concerns about the proposed tax stamp regime, warning that additional cost pressures could undermine manufacturing output and investment.
While the government has yet to announce an official implementation date, recent engagements between regulators and industry players suggest the policy remains under active consideration.
