Beer Manufacturers Urge FG to Drop Tax Stamp Plan, Say It Will Deepen Economic Hardship
Story written by Myra Chinonso October 6,2025
Brewers Warn FG: Tax Stamp Rollout Could Deepen Inflation and Hurt Local Industry
Nigeria’s brewing industry has urged the Federal Government to suspend plans to introduce tax stamps—a digital tracking system for excise products—warning that the policy could worsen inflation, threaten jobs, and hurt local production.
The brewers, under the Beer Sectoral Group (BSG) of the Manufacturers Association of Nigeria (MAN), argued that the proposed tax stamp system would impose new financial and operational burdens on an already struggling industry.
According to Abiola Laseinde, Executive Director of the Beer Sectoral Group, tax stamps—often referred to as digital identifiers or track-and-trace systems—are inefficient and counterproductive, causing production delays, higher compliance costs, and potential price hikes for consumers.
“The industry is deeply concerned that this proposal is coming at a time when operators are already battling rising excise rates, foreign exchange volatility, and high inflation. Adding the cost of tax stamps will only worsen business hardship and fuel inflation,” Laseinde said.
Brewers Say Tax Stamps Unnecessary for Beer Industry
Laseinde noted that the beer industry is one of the most regulated and transparent sectors in Nigeria, with no evidence of illicit trade or counterfeiting—the main reason tax stamps are often introduced in other industries.
“Tax stamps may be useful where illicit trade exists, but in beer production, there’s zero illicit trade. Brewing is complex, beer is bulky, and resale value is low—making counterfeiting unprofitable,” she explained.
The industry also highlighted that breweries already operate under strict compliance, using digital counters, on-site Customs officers, and auditable records that provide complete transparency.
Existing Digital Systems Already Ensure Transparency
Laseinde commended the Nigeria Customs Service (NCS) for implementing the B’Odogwu Automated Excise Reporting System (ERS), an innovation that has already digitized excise monitoring nationwide.
The ERS platform automates production volume tracking and excise duty computation in real time, ensuring transparency and reducing leakages.
“The federal government has already invested in home-grown digital tools like the Customs ERS and FIRS e-Invoicing, which deliver full visibility of excise operations. These systems are effective, transparent, and locally driven,” she stated.
Brewers Urge FG to Strengthen Existing Systems, Not Import New Ones
The Beer Sectoral Group warned that importing foreign-made tax stamp systems could lead to capital flight and operational disruption for local manufacturers.
“We urge the government to rescind the proposed tax stamp rollout and instead strengthen existing systems. Protect local industries and jobs from unnecessary financial burdens and avoid policies that have failed elsewhere,” Laseinde said.
She emphasized that the brewing industry remains committed to supporting government revenue generation through transparent and efficient frameworks—without compromising business sustainability or increasing inflationary pressure on consumers.
“The industry stands ready to collaborate with government on effective policies that balance revenue protection with economic stability,” she added.
