News
Nigerians Consumed N2.18 Trillion Worth of Alcohol in 2022
Nigerians consumed alcohol worth about N2.18 trillion in 2022, according to a report titled the {Nigerian Alcoholic Beverages Industry Report, 2022”.
This represents 13.3 per cent of the country’s entire budget in that year.
According to technext24.com, driving this growth are online alcohol vendors like drinks.ng and naijaliquor.com.
These startups have focused on digitally connecting buyers and sellers in the alcohol industry by exploring an alcohol-focused vendor platform model.
They also include Trade Depot’s Shop-Top-Up, Seta, Vendease, MyMiniBar, MyLiquorhub, Cubed-by-Drinks, and BarrelsDotNg, etc.
Per the report, the activities of these digital distributors saw them record impressive growth numbers, with nearly 200 per cent value growth recorded in the beer distribution segment.
This impressive growth number details the value these online vendors are bringing into the alcohol distribution and e-commerce space.
“These are newer players in the industry who have brought in significant capital, technology capacity and Buy Now Pay Later (BNPL) options into wines and spirits redistribution, targeting retailers, lounges and clubs, and even wholesalers,” the reports stated.
Online alcohol vendors record growth as Nigerians consumed N2.18t worth of alcohol in 2022
One of the new alcohol distribution startups makes use of a purchasing history credit-rating approach for its BNPL offering rather than the typical banking history approach, as technext24.com reported.
Others like Shop-Top-Up and Cubed-by-Drinks, use an in-house developed order-aggregation algorithm to optimally service customers.
These new online players, due to their nature as tech startups, have been able to attract foreign funding to the tune of over N500 billion into the alcoholic beverage industry in Nigeria within the last 2 years. This further validates the growth opportunities within the industry.
More on alcohol consumption in Nigeria 2022
In light of the uncertainty that came with election preparations, Naira notes revamp, and insecurity issues that rocked 2022 and severely hampered spending power, one would expect the overall spending on liquor to suffer a decline. However, this industry has recorded consistent overall year-on-year value growth.
As earlier mentioned, the sector raked in a revenue of N2.18 trillion. Breaking it down to the number of alcohol consumed in 2022, the report noted that if the liquor consumed in Nigeria last year was shared equally amongst ALL Nigerians, each person would have had 16 bottles.
Compared to previous years, it is plain to see that the sector has witnessed tremendous growth year-over-year. In 2018, the total revenue accrued by the industry was $2.86 billion. 2019 witnessed a 10.1 per cent increase as total revenue rose to $3.15 billion.
Online alcohol vendors record growth as Nigerians consumed N2.18t worth of alcohol in 2022
2020 witnessed a slowdown in revenue growth possibly due to the COVID-19 pandemic that saw lockdown measures put in place across the world. That notwithstanding, the industry still witnessed a 3.1 per cent increase to record a revenue of $3.25 billion.
2021 came with an explosion in revenue for the industry as Nigerians proceeded to drink $4.47 billion worth of alcohol. This represents a whopping 37.5 per cent increase from the previous year. And the growth didn’t slow down in the following year as revenue from alcohol rose to $5.29 billion. This is an 18.4 per cent increase from the preceding year.
Put in proper context, the industry (18.4%) recorded more growth than salt and spices (3.42%), milk (9.58%), cereals (9.94%), and bread (0.48%). The report explained that the range of offerings and budget-friendly products available in the alcohol space are major drivers of this growth recorded year over year.
Online alcohol vendors record growth as Nigerians consumed N2.18t worth of alcohol in 2022
“The Nigerian alcohol industry is resilient and adaptable, offering a wide range of products to suit all budgets. From premium whiskeys and champagnes to affordable sachet bitters, PET-bottle gins, and local brews, there is something for everyone,” the report reads.
Going forward
Beer is the most popular alcohol category and responsible for 54 per cent of total consumed value. While revenue continues to increase, it seems the local breweries are operating at a loss. Nigeria’s largest brewery and makers of the more popular Nigerian beer brands, Nigerian Breweries announced a N67 billion loss before tax in the first half of 2023. This was despite recording a 1.27 per cent growth in revenue.
The foremost brewer attributed this decline to the effect of fuel subsidy removal on consumers, naira devaluation and its effect on input cost, and mostly the revaluation of foreign exchange obligations. These factors are expected to impact alcohol consumption in 2023.
The report is however optimistic that online alcohol vendors, with their unique selling propositions like cash backs, and their inclusion of buy now pay later (BNPL) models in their operations, will become major drivers in the space.
Credit: technext24.com
News
Verve Partners Ali Express On Seamless Cross-Border Shopping
Verve International, Africa’s domestic payments card scheme and token brand, has announced that its cards are now accepted on AliExpress, one of the world’s largest online retail platforms.
This landmark partnership expands Verve’s global reach, offering seamless and secure payment solutions and providing millions of Verve cardholders and merchants worldwide with easy access to AliExpress’ extensive range of products, including fashion, electronics, home goods, beauty, and more.
The collaboration empowers Verve cardholders, both locally and internationally, to engage in cross-border transactions.
It also reinforces Verve’s unwavering commitment to delivering inclusive, innovative, and secure digital payment solutions that empower individuals and businesses alike, while bridging the gap in global digital commerce.
Speaking on the partnership, Vincent Ogbunude, Managing Director, Verve International, remarked: “We are excited to announce that Verve is now accepted on AliExpress, a globally recognised e-commerce leader.
This marks a significant milestone in our global expansion journey, reflecting our commitment to providing cardholders with access to more possibilities in today’s digital economy.
The addition of AliExpress to our growing network is just the beginning, there’s much more to come as we continue to innovate, expand, and deliver value to millions of Verve cardholders in Nigeria and beyond.”
Verve’s expanding global network is bolstered by partnerships with renowned brands such as Google, YouTube, Netflix, Amazon Prime, Facebook, Uber, Spotify, among others, enabling cardholders to conveniently pay for subscriptions in naira.
These alliances solidify Verve’s position as a trusted leader in the digital payments space, ensuring that consumers can access top-notch services across diverse industries.
With AliExpress joining this network and Verve integrated into its payment options, Verve cardholders can easily shop and pay for a wide range of products.
To shop on AliExpress using a Verve card, simply sign in, select the items to buy, and click ‘Buy now.’ When prompted, add a new card and enter the Verve card details. Save the information for future use, confirm the details, and complete the payment seamlessly.
News
Stanbic IBTC Asset Management Unveils Anti-scam Measures to Protect Mutual Fund Holders
Stanbic IBTC Asset Management has introduced strong measures to safeguard its customers from scams targeting mutual fund holders.
In response to this trend, the company has launched a strategic campaign to educate customers on protecting their investments and understanding the correct procedures for mutual fund subscriptions.
The Company, in a statement disclosed that recently, enquiries about the authenticity of messages for mutual fund subscription have surged. It stated: “Many of these messages contain differing and potentially incorrect account numbers, leading to confusion and concern among investors.
“In response to these concerns, Stanbic IBTC Asset Management launched a campaign to educate customers by providing accurate information and security tips to reduce the likelihood of clients falling prey to scam attacks.
“The campaign has established three main objectives: first, to educate customers about the mutual fund subscription process by providing precise and accurate information that empowers them to make informed decisions.
Second, it aims to ensure that customers verify the payment accounts for any Stanbic IBTC mutual fund investments, encouraging due diligence in confirming the legitimacy of financial communications”.
The statement further stated that the campaign seeks to raise awareness of scam attempts that may mislead customers into using incorrect account details, highlighting the tactics used by scammers to keep customers informed and vigilant.
Busola Jejelowo, the Chief Executive of Stanbic IBTC Asset Management, recently addressed the importance of a new initiative to safeguard customers in an increasingly complex financial landscape.
“At Stanbic IBTC, our top priority is our customers’ financial safety, and we are fully committed to ensuring that our clients have the security they need while managing their investments”.
News
Amnesty International Condemns Police Actions During #EndBadGovernance Protests
Amnesty International has accused Nigerian police of using excessive force against demonstrators during the #EndBadGovernance protests, which took place from August 1 to 10 across the country in response to Nigeria’s harsh economic conditions.
According to the human rights organization, the police crackdown resulted in the deaths of at least 24 people, including 20 young adults, two children, and an older person.
Amnesty’s report claims that the victims were shot by police at close range, often in the head or torso, indicating an intent to kill. Two survivors sustained severe injuries, while others suffered from the indiscriminate use of tear gas. The organization condemned the actions of security personnel, describing the violence as “unbelievable lawlessness” and accusing authorities of covering up the atrocities to downplay the death toll.
Eyewitnesses from Kano, Katsina, Jigawa, and other states told Amnesty that the protests began peacefully but escalated into chaos when police opened fire with live ammunition and tear gas. In Kano, 12 people were killed, while Jigawa and Niger states reported three fatalities each. Kaduna and Maiduguri also recorded multiple deaths.
In addition to the killings, over 1,200 protesters, including minors, were detained, and more than 146 were charged with treasonable offenses. Some detainees reported being subjected to torture. One protester, Khalid Aminu, described being beaten with sticks and iron cables while in the custody of the Department of State Services (DSS). Another detainee, Michael Adaramoye, was held for two months for participating in a protest in Abuja.
Despite mounting evidence, including eyewitness accounts, medical records, and video footage, Nigerian authorities have denied involvement in the violence, attributing the deaths to “unknown gunmen” or dismissing reports as “fake news.” Amnesty International has called on President Bola Tinubu to establish an independent and impartial investigation into the violations and to hold those responsible accountable.
The protests, triggered by widespread corruption and economic hardship, have reignited concerns about the Nigerian government’s disregard for human rights. Amnesty International stressed that law enforcement’s use of firearms against peaceful protesters violates international standards, urging authorities to end impunity and ensure justice for the victims.
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