The Spirits and Wines Association of Nigeria (SWAN) says Nigeria loses an estimated N428 billion annually to illicit trade in spirits and wines.
The Director-General of the association, Tony Okwoju, disclosed this at the conclusion of a one-day stakeholders’ workshop on combating illicit trade in the spirits and wines industry on Wednesday in Abuja.
Okwoju said the scale of illicit alcohol trade in the country remained alarming, citing a 2024 survey which showed that about 40 per cent of spirits and wines sold in Nigeria were illicit products.
According to him, the figure implies that two out of every five bottles circulating in the market are illegal, posing serious threats to public health, government revenue and legitimate businesses.
He explained that illicit trade covered tax-evaded, smuggled, parallel and counterfeit alcohol products, noting that counterfeit alcohol, though a smaller segment carried higher risks because of unregulated production and safety concerns.
“According to a survey that was carried out by Euromonitor in 2024, the level of illicit trade in spirits and wines in Nigeria was about 40 per cent.
“This suggests that for every five bottles sold, two were illicit trade. So that alone gives you a sense, if you will, of how heavy and huge it is.
“In terms of value, the government is losing something in the range of 428 billion in revenue,” he said.
Earlier, the Managing Director of the association, Michael Ehindero, said the workshop attracted more than 800 participants, including regulators, policymakers, enforcement agencies, industry operators and media practitioners.
According to him, the workshop deliberates on coordinated strategies to address the challenges of illicit trade in the spirits and wines industry.
“Illicit trade, particularly in spirits and wines, remains a significant threat to the public health of Nigerians, to government revenue, and to the sustainability of legitimate businesses operating within the law in Nigeria.
“Throughout this workshop, participants examined the scale and impact of illicit alcohol, shared insights from both local and international perspectives, and more importantly, identified practical and coordinated approaches to tackle the problem,” he said.
Ehindero emphasised that effective action against illicit trade required stronger collaboration among stakeholders, improved regulatory alignment, consistent enforcement and increased consumer awareness.
He identified factors driving 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, illicit alcohol trade had resulted in health hazards and reported cases of fatalities linked to unsafe and counterfeit products.
He reaffirmed the association’s commitment to promoting responsible business practices, regulatory compliance and consumer protection across the industry value chain.
He added that members would continue collaboration with enforcement agencies to implement outcomes of the workshop aimed at curbing illicit trade.(NAN)
