Tax Stamp Policy Threatens Nigerian Brewing Industry Profits

Thibaut Boidin, the Managing Director and Chief Executive Officer of Nigerian Breweries Plc, issued a strong warning regarding the federal government's proposed tax stamp policy during the company's 80th Annual General Meeting in Lagos. He cautioned that the implementation of this policy could trigger a dramatic collapse in profits across the brewing industry, which is one of Nigeria's largest manufacturing sectors.

Boidin argued that the brewing sector does not face significant levels of illicit products that would justify such a measure. He stated that the policy could lead to a 100% decrease in profits, potentially wiping out government revenue from the sector and triggering a broader industrial downturn.

He emphasized that the brewing industry is linked to approximately three million direct and indirect jobs, which are at risk. Boidin also highlighted the need for stable fiscal policies to maintain investor confidence.

Dr. Bamidel Akinyemi noted that regulatory stability is critical for capital-intensive sectors like brewing.