Illicit alcohol trade drains billions of naira from Nigeria each year, and stakeholders gathered in Abuja for a one-day workshop on the spirits industry to confront this growing crisis.
Illicit Alcohol Drains ₦428 Billion Revenue
SWAN Director-General, Tony Okwoju, addressed participants and revealed that Nigeria loses about ₦428 billion annually.
He cited a 2024 survey and reported that illicit products make up 40% of spirits and wines sold nationwide.
He further explained that traders place two illegal bottles in circulation for every five bottles sold.
Smugglers, tax evaders, counterfeiters, and parallel dealers actively drive the illicit alcohol supply chain across the country.
Although counterfeit drinks hold a smaller share, producers still manufacture them in unsafe conditions, and this sharply increases health risks.
Okwoju stressed that the government loses about ₦428 billion in revenue every year.
Therefore, he urged regulators, enforcement agencies, and industry players to coordinate quickly and respond more decisively.
Industry Response And Stakeholder Action
SWAN organised the workshop in Abuja and brought together over 800 participants from key sectors.
These participants included policymakers, regulators, enforcement agencies, and industry operators, and they engaged in focused discussions.
Together, they examined practical strategies and developed actions to reduce illicit alcohol trade across Nigeria.
In addition, SWAN Managing Director Michael Ehindero addressed the gathering and described illicit trade as a major threat.
Read Also: FCCPC, LASCOPA Ink MoU On Consumer Protection
He explained that it weakens legitimate businesses, reduces government revenue, and exposes consumers to unsafe products.
Participants identified key drivers, and they pointed to cheap prices, weak regulation, and high tax pressure.
They also reported that counterfeit alcohol has caused severe illness and, in some cases, deaths.
Ehindero stressed that stakeholders must strengthen collaboration, improve enforcement, and raise public awareness.
Market Growth And Consumer Trends
Meanwhile, Nigeria’s spirits market continues to expand as consumer tastes shift and the population grows younger.
Bitters lead consumption with 38%, while whiskey and vodka each hold 15% market share.
Gin accounts for about 10% of total spirits consumption nationwide.
Overall, taste drives most consumer choices, while health concerns play a smaller role.
On average, consumers spend ₦7,614 weekly on spirits, although most still spend below ₦5,000.
Manufacturers now promote sachets and PET bottles to help regulated brands compete more effectively.
However, industry experts warn that strict packaging restrictions could push more consumers toward illicit alcohol markets.
