Nigeria loses an estimated N428 billion annually to illicit trade in spirits and wines, according to the Director-General of the Spirits and Wines Association of Nigeria, Tony Okwoju.
Okwoju disclosed this at the end of a one-day stakeholders’ workshop on combating illicit trade in the spirits and wines industry held in Abuja.
He noted that the scale of illegal alcohol trade in the country remains significant, citing a 2024 survey which found that about 40 per cent of spirits and wines sold in Nigeria are illicit.
“The 40 per cent estimate means that two out of every five bottles in circulation are illegal,” Okwoju said.
He explained that illicit trade in the sector includes smuggled products, tax-evaded alcohol, counterfeit drinks and parallel market imports.
While counterfeit alcohol accounts for a smaller share of the illicit market, Okwoju warned that it carries greater health risks due to unsafe production processes.
“In terms of value, the government is losing something in the range of N428 billion in revenue,” he added.
According to industry stakeholders, the widespread circulation of illicit alcohol poses serious risks to both the economy and public health.
The workshop attracted more than 800 participants, including regulators, policymakers, enforcement agencies and industry operators, who gathered to discuss strategies for addressing the challenge.
The Managing Director of the association, Michael Ehindero, said the event focused on identifying practical approaches to reduce the growing illicit alcohol market.
Ehindero stressed that illegal alcohol undermines legitimate businesses, erodes government revenue and threatens consumer safety.
Participants at the event identified several factors driving the illicit trade, including demand for cheaper products, regulatory gaps and the pressure of high taxes on regulated products.
They also noted that counterfeit alcohol has been linked to severe health complications and fatalities in some cases.
Ehindero emphasised that effectively tackling the issue would require stronger collaboration among regulators, improved enforcement measures and greater consumer awareness.
Nigeria’s spirits market continues to expand, supported by shifting consumer preferences and demographic growth.
Market data presented at the workshop showed that bitters account for about 38 per cent of the spirits market, followed by whiskey and vodka at 15 per cent each, while gin represents about 10 per cent.
Taste remains the primary factor influencing consumer choice, while health considerations play a smaller role in purchasing decisions.
Average weekly spending on spirits stands at about N7,614, although most consumers spend below N5,000.
Industry analysts noted that affordable packaging formats such as sachets and PET bottles have helped regulated brands compete with informal market operators.
However, experts warned that potential regulatory restrictions on these packaging formats could unintentionally shift demand toward unregulated and illicit products if not carefully managed.
