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The Managing Director and CEO of Nigerian Breweries Plc, Thibaut Boidin, has raised a significant alarm regarding the federal government’s planned tax stamp policy, warning it could result in a 100% profit decrease across the brewing sector.

Speaking at the company’s 80th pre-Annual General Meeting- AGM media briefing in Lagos, Boidin emphasized that while tax stamps are traditionally used to combat illicit production and counterfeiting, Nigeria’s formal brewing industry currently faces “zero illicit production.”

He argued that imposing this additional regulatory layer would provide no practical benefit to tax collection while introducing severe financial strain on legitimate manufacturers.

Boidin cautioned that the implementation of this policy could lead to a total collapse of the industry, potentially wiping out government revenue from the sector and endangering approximately three million direct and indirect jobs.

The CEO stressed that manufacturers require policy predictability and fiscal stability to sustain investments, especially as they navigate a volatile economic landscape. He noted that the “unintended consequences” of such reforms could destabilize a sector that is already struggling with high operational costs and reduced consumer purchasing power due to inflation.

This warning comes at a critical juncture for Nigerian Breweries, which recently reported a pre-tax profit of N161.06 billion for the 2025 financial year. This performance marked a significant rebound from a substantial loss of N182.9 billion in 2024, driven by a 35.32% surge in revenue to N1.5 trillion.

Finance Director Maria Karaseva attributed this turnaround to improved cost management and a successful rights issue in 2024, which helped reduce finance expenses. However, there are fears that the gains made in 2025 could be entirely erased if the tax stamp policy is enforced.

Beyond industry-specific challenges, Boidin highlighted that the broader macroeconomic environment remains complex. Factors such as foreign exchange harmonization, the removal of petrol subsidies, and ongoing inflation have put immense pressure on consumers, leading to constrained beer consumption.

While 2025 showed signs of relative stability compared to previous years, the manufacturing sector remains vulnerable to global risks, including the Middle East crisis and fluctuating FX rates.

The industry’s recovery, therefore, remains fragile and highly sensitive to further tax-related shocks.
The sentiment expressed by Nigerian Breweries reflects a wider concern among manufacturing stakeholders who have met with the Comptroller-General of Customs, Adewale Adeniyi, regarding the proposed system. Although an official commencement date for the tax stamp implementation has not been announced, the looming threat continues to create anxiety within the private sector.

Boidin concluded by urging the government to reconsider measures that could trigger wider economic damage and instead focus on policies that support industrial growth and job retention.