The Managing Director and Chief Executive Officer of Nigerian Breweries Plc, Thibaut Boidin, has issued a stark warning that the Nigerian government's planned tax stamp policy could lead to a 100% reduction in profits across the brewing industry and destabilize the sector.

Speaking at the company’s 80th pre-AGM media briefing in Lagos, Boidin emphasized the critical need for policy predictability and fiscal stability for manufacturers to sustain investments and support economic growth.

He acknowledged that government reforms aimed at boosting revenue are understandable, but cautioned that some measures can inflict severe unintended consequences on industries already facing challenging operating conditions.

A tax stamp is a government-implemented security label or digital code affixed to excise goods like alcohol, tobacco, and sugary drinks to verify that taxes have been paid. These are typically introduced to combat illicit production and counterfeiting in sectors where such activities are prevalent.

What the Nigerian Breweries CEO is saying

Boidin contended that concerns about illicit production do not apply to Nigeria’s formal brewing industry. He stated, “Tax stamp is a way to control illicit production. It has been announced that a tax stamp will be implemented in Nigeria. This applies to manufacturers that are impacted by a lot of illicit production. Here, it is zero illicit production.”

He further elaborated on the potential financial fallout if the policy were applied to the brewing sector, stating, “The impact is a 100% decrease in the profits generated by the industry. We made a calculation, it is huge.”

Beyond eradicating profitability, Boidin warned that the policy could also diminish government earnings from the sector and trigger broader economic repercussions.