The Spirits and Wines Association of Nigeria (SWAN) has raised alarm over the scale of illicit trade in the country’s alcohol market, revealing that about 40 per cent of spirits and wines consumed in Nigeria were illegal, costing the government an estimated N428 billion in lost revenue annually.
Addressing newsmen in Abuja after a stakeholder workshop on combating illicit trade, SWAN President, Michael Ehindero, described the trend as a major threat to public health, government earnings, and legitimate businesses.
Ehindero who stressed that the association would not reduce the crisis to financial losses alone, however warned that the human cost was far more severe.
He said: “We will not look at this conversation in monetary terms primarily; we will look at it in the value of human lives
“There is no value to human lives. We have seen reports of loss of life and serious health damage from exposure to illicit and counterfeit alcohol.”
Ehindero explained that illicit trade encompasses smuggling, tax evasion, and unregulated parallel imports, while counterfeit products often produced under unsafe conditions, form a smaller but particularly dangerous subset.
“Counterfeit is a subsection of illicit trade, but it carries unique risks because of unregulated and uncontrolled production.”
The SWAN president identified multiple drivers of illicit trade, including consumer demand for cheaper alternatives, regulatory gaps, and high taxation.
“There is an incentive for people to cheat. It is human nature, and because this is a business, people are looking for cheaper alternatives. Also, when taxation is excessive, it can open the door for some of these practices.”
He added that illicit trade was s not peculiar to the alcohol industry but a widespread problem across sectors, even as he called for stronger collaboration among regulators, enforcement agencies, and industry players, noting that no single stakeholder can tackle the challenge alone.
“Effective action will require stronger collaboration across the public and private sectors, improved regulatory alignment, consistent enforcement, and increased consumer awareness,” Ehindero added.
Citing a 2024 Euromonitor survey, the association’s Director-General, Tony Okwoju, said, “The level of illicit trade in spirits and wines in Nigeria is about 40 per cent, which suggests that for every five bottles sold, two are illicit. That alone gives you a sense of how heavy and huge the problem is.”
Okwoju added that beyond the market share, the financial implication is staggering. “If I could consult, I think the government is losing something in the range of N428 billion in revenue.*
He also highlighted ongoing partnerships with regulatory bodies, including NAFDAC, to curb the menace.
“Our members are continually collaborating and engaging with enforcement agencies, not just NAFDAC, with a view to working together to fight this, it is a continuum.”