The Nigerian Breweries, NB Plc has criticized the federal government’s proposed increase in excise duty on countrywide brewed goods, claiming it would exacerbate current challenges and have an impact on pricing.
The company also outlined some of the socioeconomic issues the new administration will need to deal with, including pressure on inflation, rising interest rates, foreign exchange, forex rates, and the implementation of a cashless policy and the redesign of the naira, among others.
The business outlook for 2023 and beyond depends on the government meeting the current excise roadmap (2022 to 2024), according to Managing Director/CEO of NB, Hans Essaadi, who was speaking at a pre-Annual General Meeting media briefing in Lagos.
Increases in excise taxes that are abrupt and sharp will backfire and eventually damage investor confidence. Increased government revenue is significantly influenced by a stable and predictable excise roadmap.
The expectation that excise duty would be increased, which would likely result in price increases, indicates that 2023 will likely be another difficult year. On this, we are already in communication with the authorities.
In addition, the country has been experiencing a cash shortage due to the difficulties we have been having with foreign exchange. All of these had a significant impact on social and commercial activities, and the brewery industry was not exempt, he claimed.
Regarding the future, Essaadi stated: “Despite this, we are well-positioned to navigate the challenges in the short term so that we can deliver long-term sustainable value to our shareholders.”
