The Nigerian Breweries, NB Plc has criticized the federal government’s proposed hike in excise duty on countrywide brewed goods, claiming it would exacerbate current challenges and have an impact on pricing.
The corporation also noted some of the socioeconomic issues the next administration will need to deal with, including the strain on the naira and the implementation of a cashless policy, rising interest rates, foreign exchange, and forex rates.
The business prognosis for 2023 and beyond depends on the government meeting the current excise roadmap (2022 to 2024), according to Managing Director/CEO of NB, Hans Essaadi, who was speaking at a pre-Annual General Meeting media conference in Lagos. Increases in excise taxes that are abrupt and sharp will backfire and eventually damage investor trust. An excise plan that is consistent and predictable is a key success element for increasing government income.
“2023 looks set to be another challenging year given the expectations that excise duty would be raised as it has the implication for price increase. We are already engaging with the authorities on this. There are also the forex challenges we have been facing coupled with the cash crunch faced across the country. All these had a huge impact on commercial and social activities with the brewery sub sector not left out,” he said.
On future prospects, he said: “Nevertheless we are poised to navigate the challenges in the short term to enable us deliver long term sustainable value to our shareholders.”