The Managing Director and Chief Executive Officer of Nigerian Breweries Plc, Thibaut Boidin, has warned that the planned tax stamp policy by the Nigerian government could cause a 100% decrease in profits across the brewing industry and destabilise the sector.
Speaking during the company’s 80th pre-AGM media briefing in Lagos, Boidin said manufacturers need policy predictability and fiscal stability to sustain investments and support economic growth.
According to him, while government reforms aimed at boosting revenue are understandable, some measures may create severe unintended consequences for industries already operating under difficult conditions.
A tax stamp is a regulatory mechanism where governments require a physical, high-security label or digital code to be affixed to excise goods such as alcohol, tobacco, and sugary drinks to prove that taxes have been paid.
What the Nigerian Breweries CEO is saying
Boidin noted that tax stamps are typically introduced to curb illicit production and counterfeiting in sectors where illegal manufacturing is widespread.
However, he argued that such concerns do not exist in Nigeria’s formal brewing industry.
- “Tax stamp is a way to control illicit production. It has been announced that a tax stamp will be implemented in Nigeria. This applies to manufacturers that are impacted by a lot of illicit production. Here, it is zero illicit production,” he said.
He added that if the policy is applied to the brewing sector, the financial consequences would be severe.
- “The impact is a 100% decrease in the profits generated by the industry. We made a calculation, it is huge,” he said.
Boidin said beyond wiping out profitability, the policy could also reduce government earnings from the sector and trigger wider economic damage.
- “It means for the government, zero revenue from where we are today. It means also that the full industry will collapse,” he stated.
He warned that as many as three million jobs linked directly and indirectly to the industry could be affected if the sector contracts sharply.
Get up to speed
Boidin’s comments on the planned tax stamps came amid discussions on Nigerian Breweries’ return to profitability in 2025 despite economic constraints.
Nairametrics reported that the company reported a pre-tax profit of N161.06 billion for the 2025 financial year, rebounding from a N182.9 billion loss in 2024, as revenue surged.
- Full-year revenue climbed 35.32% year-on-year to N1.5 trillion, with Nigerian sales representing 99.83% of total volume, providing strong support for the company’s top-line growth.
- Local sales of brewed products stood at N1.464 trillion out of N1.467 trillion, while export sales contributed N2.4 billion.
- After accounting for a cost of sales of N902.2 billion, gross profit rose to N565.1 billion, up 76.67% from N319.9 billion in 2024.
The group also recorded other income of N4.1 billion, mainly from the sale of scrap and gains on the disposal of property, plant, and equipment.
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Speaking on the operating environment, Boidin said government policies such as foreign exchange (FX) harmonisation, petrol subsidy removal and tax reforms have impacted the market, creating short-term volatility.
- “It’s not a secret that we’re operating in a very volatile environment, a very complex environment.
- “Although in 2025, we can all recognise that the macroeconomic environment was a bit more stable than in the previous years, we remain dependent on FX, and purchasing power remains under pressure,” he said.
Boidin noted that the Middle East crisis continued to pose risks to the broader economy, while inflation had constrained beer consumption due to reduced disposable income.
Also speaking, Finance Director, Maria Karaseva, attributed the turnaround partly to improved cost management and reduced finance expenses following the company’s 2024 rights issue.
What you know
Boidin’s concern about the planned tax stamp reflects the general sentiment in the manufacturing sector over the policy.
Earlier, Nairametrics reported manufacturing stakeholders were worried over the decision of the federal government to proceed with its planned tax stamp system on excisable products despite its potential negative impacts on the industry.
Although the government has not officially announced the date for the kick-off of the implementation, the Comptroller-General of Customs, Adewale Adeniyi, was said to have met with stakeholders recently to inform them of the plans.
