SABMiller Plc (SAB) expects beer volume growth to decelerate in Nigeria this year as lower oil prices dent consumption and African markets become more competitive.
Bloomberg quoted the Managing Director of the company’s Africa unit, Mark Bowman to have said this in Davos.
The company, which had predicted beer volume growth in Nigeria of about eight percent a year, may see that rate slow to three or four per cent, Bowman said.
“These are normally bumps along the road,” he said. “On balance, we see things getting back to trend.”
Oil prices have fallen more than 50 per cent in the past year, threatening growth in Nigeria ahead of presidential elections next month. The nation, home to more than 175 million people, is the largest oil producer in Africa. SABMiller also expects to raise prices in the country, in line with what its rivals are doing, Bowman said.