Nigeria is losing an estimated N428 billion in government revenue each year due to illicit trade in spirits and wines, according to the Spirits and Wines Association of Nigeria (SWAN).
The association’s Director-General, Tony Okwoju, disclosed this on Wednesday in Abuja at the end of a one-day stakeholders’ workshop focused on tackling illicit trade within the sector.
Citing findings from a 2024 Euromonitor survey, Okwoju said illicit products account for a significant share of the market. “This suggests that for every five bottles sold, two were illicit trade,” he said.
“In terms of value, the government is losing something in the range of 428 billion in revenue.”
He explained that illicit trade includes tax-evaded, smuggled, parallel, and counterfeit alcohol products. While counterfeit alcohol represents a smaller portion of the market, it poses greater risks due to unregulated production processes and associated safety concerns.
SWAN Managing Director, Michael Ehindero, said the workshop attracted more than 800 participants, including regulators, policymakers, enforcement agencies, industry players, and members of the media, all convened to discuss coordinated strategies to address the challenge.
“Illicit trade, particularly in spirits and wines, remains a significant threat to the public health of Nigerians, to government revenue, and to the sustainability of legitimate businesses operating within the law in Nigeria,” Ehindero said.
Participants at the workshop assessed the scope and impact of illicit alcohol trade, shared both local and global perspectives, and explored practical solutions to curb the trend.
Ehindero identified key drivers of illicit trade to include consumer demand for cheaper alternatives, regulatory weaknesses, and taxation pressures that may push market activities underground.
Beyond the economic impact, he warned of serious public health risks, noting that unsafe and counterfeit alcohol products have been linked to health complications and fatalities.
He emphasised the need for stronger collaboration among stakeholders, better regulatory coordination, consistent enforcement, and increased public awareness to effectively combat the menace.
Ehindero also reaffirmed SWAN’s commitment to responsible business conduct, adherence to regulations, and consumer protection across the value chain, adding that the association would continue to work closely with enforcement agencies to implement resolutions from the workshop aimed at reducing illicit trade.
Post A Comment: