Abuja: Nigeria is reportedly losing an estimated N428 billion annually to the illicit trade in spirits and wines, a revelation made by the Spirits and Wines Association of Nigeria (SWAN). This alarming statistic was disclosed by the Director-General of the association, Tony Okwoju, during the conclusion of a one-day stakeholders’ workshop focused on combating illicit trade within the spirits and wines industry.
According to News Agency of Nigeria, Okwoju highlighted that a 2024 survey indicated that approximately 40 percent of spirits and wines sold in Nigeria are illicit products. This means that two out of every five bottles available in the market are illegal, posing significant challenges to public health, government revenue, and the sustainability of legitimate businesses. Okwoju elaborated that the illicit trade encompasses tax-evaded, smuggled, parallel, and counterfeit alcohol products. He noted that while counterfeit alcohol represents a smaller segment, it carries higher risks due to unregulated production and safety concerns.
The Managing Director of SWAN, Michael Ehindero, shared insights from the workshop, which attracted over 800 participants, including regulators, policymakers, enforcement agencies, industry operators, and media practitioners. He explained that the workshop focused on developing coordinated strategies to tackle the challenges posed by illicit trade in the spirits and wines industry. Ehindero pointed out that illicit trade severely threatens the public health of Nigerians, government revenue, and the survival of businesses operating within the legal framework.
The workshop provided a platform for participants to examine the scale and impact of illicit alcohol trade, drawing insights from both local and international perspectives. The discussions also led to the identification of practical and coordinated approaches to address the problem. Ehindero emphasized the need for stronger collaboration among stakeholders, improved regulatory alignment, consistent enforcement, and increased consumer awareness to effectively combat illicit trade.
Furthermore, Ehindero identified the driving factors of illicit trade to include demand for cheaper alternatives, systemic regulatory gaps, and taxation pressures that could encourage illegal market activities. He stressed that beyond financial losses, the illicit alcohol trade has led to health hazards and reported fatalities linked to unsafe and counterfeit products. Ehindero reaffirmed the association’s commitment to promoting responsible business practices, regulatory compliance, and consumer protection across the industry value chain. He stated that members would continue collaborating with enforcement agencies to implement the outcomes of the workshop aimed at curbing illicit trade.