Nigeria is losing an estimated ₦428 billion annually to illicit trade in spirits and wines, according to the Director-General of the Spirits and Wines Association of Nigeria, Tony Okwoju.
Speaking at a one-day stakeholders’ workshop on combating illicit trade in the sector in Abuja, Okwoju, said the problem remains widespread, according the News Agency of Nigeria.
He cited a 2024 survey indicating that about 40 per cent of spirits and wines sold in Nigeria are illicit.
Industry stakeholders have cautioned that the widespread availability of illicit alcohol poses significant threats to both public health and the economy.
“The 40 per cent estimate means that two out of every five bottles in circulation are illegal, ” he said.
He further clarified that illicit trade encompasses smuggled, tax-evaded and counterfeit products, as well as goods circulated through parallel markets.
He stated that although counterfeit alcohol makes up a relatively small share of the market, it presents more severe health risks because of unsafe production methods.
“In terms of value, the government is losing something in the range of N428 billion in revenue,” he noted.
He added that the data underscores the urgent need for coordinated efforts to curb the growing illicit alcohol trade.
The workshop brought together more than 800 participants, including regulators, policymakers, enforcement agencies, and industry stakeholders, to discuss strategies for addressing the problem.
The Managing Director of SWAN, Michael Ehindero, said the event focused on developing practical strategies to address illicit trade in the sector.
He noted that illegal alcohol sales weaken legitimate businesses, erode government revenue, and endanger consumer safety.
Participants identified key drivers of the problem, including demand for cheaper alternatives, regulatory loopholes, and tax-related pressures.
They also warned that counterfeit alcohol has been associated with serious health complications and, in some cases, fatalities.
Ehindero stressed that addressing the challenge will require stronger collaboration, more effective enforcement, and greater consumer awareness.
