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Nigerians Consumed N2.18 Trillion Worth of Alcohol in 2022

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Nigerians consumed alcohol worth about N2.18 trillion in 2022, according to a report titled the {Nigerian Alcoholic Beverages Industry Report, 2022”.

Nigerians Consumed N2.18 Trillion Worth of Alcohol in 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

 

 

 

 


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NIA Questions Legality of Reps’ Financial Probe

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The Nigerian Insurers Association has urged the House Committee on Capital Market and Institutions to respect the constitutional separation of powers as it carries out a probe on over 20 insurance firms.

In a statement on Tuesday night, the Director General/Chief Executive Officer of NIA, Mrs Bola Odukale, said the decision of NIA and the affected firms to approach the court was to seek clarity on the constitutional limits of the House Committee’s probe.

It would be recalled that the House of Representatives on Monday is investigating no fewer than 25 insurance companies operating in the country for various financial infractions spanning financial reporting, claims settlement, premium remittance, and issuance of policies.

The Chairman, House Sub-Committee on Capital Market and Institutions, Kwamoti Laori, during a meeting with the management of the insurance companies at the National Assembly Complex in Abuja, said the meeting was convened following the receipt of a petition on infractions by the insurance companies.

In the statement, Odukale said, “The Association wishes to state unequivocally that all actions taken by the NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice by its Solicitors. It was on the firm instruction of legal counsel that recourse was made to the courts.

“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention in order to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of law.

“The Court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, by constitutional design, is the exclusive province of statutory regulators, such as the National Insurance Commission, Securities and Exchange Commission, Nigerian Exchange, Financial Reporting Council, Nigeria Data Protection Commission, and the National Information Technology Development Agency.

“This raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy.”

Odukale maintained that the NIA was committed to lawful and constructive engagement with all arms of government, provided that such engagement respects the autonomy of statutory regulators and the boundaries established by the Constitution.

“The NIA will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity,” Odukale concluded.

17 of the companies that went to court were represented by their lawyer, Mr Abimbola Kayode, at the meeting with the committee.


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Horn of Africa Leaders Seek Enhanced Digital Integration for Increased Regional Growth

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Finance ministers and development partners from the Horn of Africa have called for enhanced digital integration to boost trade, drive economic growth and promote regional stability during the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI).

Held in Nairobi, on July 14, the meeting was co-chaired by the African Development Bank’s Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo and Somalia’s Minister of Finance, Bihi Iman Egeh. Discussions underscored the critical role of digital integration in reducing trade barriers, boosting government service delivery and creating employment — particularly for the region’s youth.

“Digital technologies are shaping today’s economy and tomorrow’s industries. By embedding these technologies into our programs, we can not only improve inclusion but also leapfrog outdated development models,” said Nwabufo.

She called for digital integration a “central enabler” in each of the Horn of Africa Initiative’s pillars – trade, infrastructure, resilience, and human capital,

Learning through experience

Drawing from global and regional success stories, speakers highlighted the transformative potential of technology-led development. The ministers pointed to the Philippines as a strong example, where ICT has generated millions of jobs in business process outsourcing. Similarly, Kenya’s fintech innovation—especially the success of M-PESA—was cited as a model for scaling digital financial services across the region.

Participants urged governments to proactively foster digital ecosystems by capitalizing on the demographic dividend, identifying infrastructure upgrades, tighter regulatory reforms, and digital skills trainings as priorities to enable broader participation in the digital economy.

Minister Egeh reiterated the need for more coordinated regional efforts to create the enabling environment required for accelerated digital integration and expansion. He referenced the HoAI Digital Policy Matrix, adopted in 2023 which provides a blueprint on how to address key obstacles to achieving effective digital integration across the region.

Barack Makokha, Kenya’s Cabinet Secretary for National Treasury, underscored the importance of regionally-aligned public private partnerships and advocated for blended financing to reduce investment risk and expand digital access in underserved areas.

World Bank Vice President for Eastern and Southern Africa, Ndiame Diop, called for a comprehensive multi-pronged approach, combining cross-border coordination, large-scale financing, robust policy support, and digital infrastructure investments. He pointed out that such measures could transform digital integration into, “a powerful engine of economic transformation” for the Horn of Africa—ensuring no one is left behind in the digital era.

The meeting concluded with a shared recognition that sustained political will and the determination to implement a multifaceted approach are essential to unlocking the region’s economic potential and driving long-term growth.

The event also welcomed observers from the East African Community, Agence française de développement, and Shelter Afrique, reflecting strong regional and international backing for the HoAI in the development community.


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CSCS Inaugurates Custodian Portal to Enhance Digital Access, Operational Efficiency

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Central Securities Clearing System Plc (CSCS), Nigeria’s capital market infrastructure provider, has launched its Custodian Portal, a user-centric digital solution designed to optimise custodian operations through intuitive, secure and efficient features.

Haruna Jalo-Waziri, Chief Executive Officer (CEO), CSCS, announced this in a statement on Monday.

The CSCS is a Public Limited Company with a diversified shareholder base, which serves as the Central Securities Depository for the Nigerian Capital Market.

It serves as the Central Depository for Equities, Commercial Papers, Corporate Bonds, Sub-National Bonds, certain Sovereign Bonds like the FGN Sukuk and the FGN Savings Bond, Equity-traded Funds, Real Estate Investment Trusts, Mutual funds and Commodities.

Jalo-Waziri said that the custodian portal offered a streamlined experience for market participants with powerful tools that facilitate comprehensive portfolio and trade management, document tracking, share transfer operations, client symbol search, and real-time access to vital data.

He explained that the portal, designed to operate through a flexible subscription-based model, empowered users to manage their records effortlessly and securely through convenient payment channels such as GTPay and Paystack.

According to him, “Digital transformation remains at the core of our strategy to enhance the efficiency, transparency and accessibility of Nigeria’s capital market services.

“The custodian portal is a significant leap in that direction, offering custodians a centralised platform to manage critical processes in real-time.

“We are excited about the value this innovation brings to our stakeholders, and we will continue to evolve the platform in line with users’ needs and industry trends.”

The CEO also explained that the portal was designed with user experience in mind with feature tools like portfolio viewing and downloads in PDF or Excel format.

He further said that it also featured tracking of stock movements across date ranges, inbox messaging and request tracking, as well as robust user management capabilities including role assignment and status tracking.

Similarly, the Divisional Head, Business Technology and Digital Innovation, CSCS Plc, Tobe Nnadozie, said that the portal aligned with CSCS’s drive to automate the market.

“In addition to the normal features, the platform is a part of an omnichannel platform for custodians, and includes API services.

“It also connects to the market-wide workflow, which CSCS has built to ensure secured communication and approvals across all major stakeholders in the market.

“The platform is well secured with best-of-breed cybersecurity solutions and our SOC,” he said.

The Custodian Portal reinforces CSCS’s commitment to leveraging technology to streamline back-office functions and support a more agile, data-driven capital market ecosystem.

All custodians in the Nigerian capital market have now been successfully on-boarded on the Custodian Portal, marking a significant milestone in CSCS’s ongoing drive to enhance collaboration, standardise operational processes, and promote digital adoption across the market.


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