Nigeria’s brewing industry is pushing back hard against the Federal Government’s plan to introduce a tax stamp on excisable goods, warning that the move could disrupt production, hike operating costs, and worsen inflation already squeezing consumers.

The Beer Sectoral Group (BSG), which represents major breweries in Nigeria, said the proposal was unnecessary and counterproductive, especially as the sector already operates under a robust digital monitoring framework that ensures transparency and compliance.

Speaking ahead of the Nigerian Economic Summit set to begin October 6, the BSG’s Executive Director, Abiola Laseinde, urged the government to strengthen existing home-grown systems like the Nigeria Customs Service’s B’Odogwu Excise Reporting System (ERS) rather than layering on foreign-designed tax stamps, also known as track-and-trace identifiers.

According to Laseinde, the planned rollout could increase production costs, distort supply chains, and push beer prices even higher for consumers. “ERS and FIRS e-Invoicing are effective, transparent, and locally developed systems. What the government should do is strengthen them, not impose additional hurdles through tax stamps,” she said.

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Industry groups, including the Manufacturers Association of Nigeria (MAN), have also cautioned that the policy would deepen cost pressures and fuel inflation, particularly at a time when businesses are struggling with high energy prices and exchange rate volatility.

Laseinde further noted that counterfeiting in the beer industry is practically non-existent, given the nature of the product, its packaging, and the already strict compliance systems in place. “Our sector operates with on-site Customs officers, digital counters, and auditable records. Adding tax stamps would only duplicate oversight without solving any real problem,” she explained.

Data from the Nigeria Customs Service show that the B’Odogwu Excise Reporting System, introduced in October 2024, has already generated over ₦230 billion in excise revenue, evidence, the brewers say, that Nigeria’s local digital solutions work when properly supported.

The BSG’s appeal adds a new layer to ongoing debates about Nigeria’s fiscal policy direction as stakeholders prepare for this year’s Economic Summit. The brewers maintain that sustaining local innovation, protecting jobs, and consolidating proven systems should take priority over importing costly solutions that have failed in other markets.

Cynthia Nwanonyiri