Nigeria Loses N428bn Annually To Illicit Alcohol Trade – SWAN

By Aliyu Galadima

Nigeria is losing an estimated N428 billion annually to illicit trade in spirits and wines, according to the Director-General of the Spirits and Wines Association of Nigeria ,SWAN, Tony Okwoju.

The DG disclosed this at the end of a one-day stakeholders’ workshop on combating illicit trade in the spirits and wines industry held in Abuja.

Okwoju noted that the scale of illegal alcohol trade remains significant, citing a 2024 survey which found that about 40% of spirits and wines sold in Nigeria are illicit.

Industry stakeholders warned that the widespread presence of illicit alcohol poses risks to both the economy and public health.

“The 40% estimate means that two out of every five bottles in circulation are illegal”.

He explained that illicit trade includes smuggled, tax-evaded, counterfeit and parallel market products.

He noted that while counterfeit alcohol represents a smaller share, it carries higher health risks due to unsafe production processes.

“In terms of value, the government is losing something in the range of N428 billion in revenue”, he said  

He added that the figures highlight the urgent need for coordinated efforts to curb the growing illicit market.

The workshop brought together over 800 participants, including regulators, policymakers, enforcement agencies and industry operators, to address the challenge.

SWAN Managing Director, Michael Ehindero, said the event focused on identifying practical strategies to combat illicit trade.

He stressed that illegal alcohol undermines legitimate businesses, reduces government revenue and threatens consumer safety.

Participants highlighted key drivers of illicit trade, including demand for cheaper products, regulatory gaps and tax pressures.

They also noted that counterfeit alcohol has been linked to serious health risks and fatalities in some cases.

Ehindero emphasised that tackling the issue requires stronger collaboration, improved enforcement and increased consumer awareness.

Nigeria’s spirits market continues to expand, driven by changing consumer preferences and demographic trends.

Bitters account for about 38% of the market, followed by whiskey and vodka at 15% each, and gin at 10%.

Taste remains the primary factor influencing consumer choice, while health perception plays a smaller role.

Average weekly spending on spirits is around N7,614, although most consumers spend below N5,000.

Affordable packaging formats such as sachets and PET bottles have helped regulated brands compete with informal market players.

However, industry experts warn that potential regulatory restrictions on these formats could shift demand further toward unregulated and illicit products if not carefully managed.