Religious sentiments fuel attack on the beer industry in Nigeria

Industries, Trade and Investment

 

*** See Nigeria states with top drinkers

*10 coutries that drinks the most

Summary
* Nigerian Breweries Plc, Guinness Nigeria Plc , International Beverages, and others,
contributed N40.6 billion in Value Added Tax (VAT) to the federal government within the last nine months.

*Federal statisticians at the NBS said the South -South states top the country’s chart of alcohol drinkers with over N56 billion  spending

*The South West follows with N44.1 billion,, South East with N22.7 billion,  the North Central with N17.7 billion, and the North East with N6.68 billion .

 

 

THE brewery industry in Nigeria came under attack few days ago with the destruction of 1,975,000 bottles of beer worth over N200 million by the Kano State Government.

This was despite the fact that the operators in the industry, the like of Nigerian Breweries Plc, Guinness Nigeria Plc , International Beverages, and others, contributed N40.6 billion in Value Added Tax (VAT) to the federal government within the last nine months – National Bureau of Statistics (NBS) data.

Although, Kano State Government benefitted from the proceeds of alcohol sale through the Federation Accounts Allocation Committee (FAAC), yet it destroyed 1,975,000 bottle of the commodity, citing religious reasons.

The Guardian reported that the value of destroyed alcoholic beverages represents 7.5 per cent of the State Government’s September Gross VAT allocation.

In September, Kano State’s Gross Statutory Allocation from FAAC was N5.34 billion. Of that figure, N2.69 billion was Gross VAT allocation.
This means the State Government destroyed the equivalent of about 7.5 per cent of its VAT allocation from FAAC.

Hisbah Commission 

The Hisbah commission in September last year executed a similar exercise, where 196,400 bottles worth over N50 million were destroyed.

Besides confiscation of beer, Hisbah Commission had detained about 50 trucks that convened the items and charged owners to court.

In the first half (H1) of 2020, Kano State received N38.24 billion in revenue from FAAC, some of which are contributions from the Breweries sector.

Similarly, the consumption pattern of Nigerians, according to the NBS in 2019, showed that alcoholic drinks were bottom on the ladder for food and beverage items with just N150 billion.
The figure, according to the NBS, does not capture alcoholic drinks in bars, pubs, hotels, and functions, among others.

In 2019, people living in Kano consumed alcoholic beverages worth about N134 million, according to consumption expenditure pattern data from the NBS.

Nigeria’s alcohol consumption 

A breakdown of Nigeria’s alcohol consumption pattern shows the South-South zone as the least restrained community of alcohol consumers.

There, N56.5 billion was spent on alcohol, making the states of Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross Rivers the section of the country inhabiting the most enthusiastic drinkers in the year.

The seven states of Jigawa, Kaduna, Katsina, Kebbi, Kano, Sokoto, and Zamfara, making up the northwest zone, comparatively have the most restrained drinkers. But they still spent at least N2.47 billion to assuage the palate of alcohol drinkers.

Federal statisticians at the NBS said the South East with N22.7 billion, the South West with N44.1 billion, the North Central with N17.7 billion, and the North East with N6.68 billion (excluding Borno) followed in that sequence of alcohol consumers in the country.

However, in terms of the rural-urban divide, federal statisticians say there are way more drinkers in Nigeria’s rural communities than in the urban areas. Rural communities spent N92 billion on alcohol consumption, whilst the urban spent N58.2 billion.

On a global scale, the 10 countries that drink the most alcohol, in liters per capita, are ranked:

1. Moldova (17.4 liters per capita over 15+ years)

2. Belarus (17.1)

3. Lithuania (16.2)

4. Russia (14.5)

5. Czech Republic (14.1)

6. Romania (12.9)

7. Serbia (12.9)

8. Australia (12.6)

9. Portugal (12.5)

10. Slovakia (12.5)

 

The 10 countries that drink the least alcohol, in liters per capita over 15+ years, ranked:

1. Egypt (0.3 liters per capita over 15+ years)

2. Niger (0.3)

3. Bangladesh (0.2)

4. Comoros (0.2)

5. Saudi Arabia (0.2)

6. Yemen (0.2)

7. Kuwait (0.1)

8. Mauritania (0.1)

9. Pakistan (0.1)

10. Libya (0)

 

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