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…Counterfeit drinks Linked to increased deaths and illnesses
…40% of the alcohol market is now illegal
…Smuggling and tax evasion fuel the market boom
Daud Olatunji
The Spirits and Wines Association of Nigeria has raised fresh concerns over the growing scale of the illicit alcohol trade in the country, revealing that Nigeria loses an estimated $428 billion every year to the illicit market.
The association has revealed that almost 40% of spirits and wines consumed nationally are illicit, warning that the trend is not only eroding government revenues but also endangering public health.
Speaking at a stakeholders workshop on tackling illicit trade in Abuja on Wednesday, SWAN President, Michael Ehindero, described the situation as a serious economic and health crisis that requires urgent intervention.
He warned that, beyond the financial implications, the growing circulation of counterfeit alcoholic beverages has been linked to rising cases of deaths and serious health complications.
Ehindero said, “We will not look at this conversation primarily in monetary terms; we will look at it in terms of the value of human lives. We have seen reports of loss of life and serious harm to health resulting from exposure to illicit and counterfeit alcohol.”
He explained that the illicit alcohol trade includes smuggling, tax evasion and unregulated parallel imports, while counterfeit products, although a subset, pose the greatest danger due to unsafe production conditions.
“Counterfeiting is a subsection of the illicit trade, but carries unique risks due to unregulated and uncontrolled production,” he added.
The SWAN president attributed the rise in illicit trade to several factors, including consumer preference for cheaper alternatives, regulatory loopholes and what he described as excessive taxation.
“There is an incentive for people to cheat. Because it is a business, people look for cheaper alternatives. Also, when taxation is excessive, it can open the door to some of these practices,” Ehindero said.
He noted that the problem cuts across multiple sectors of the economy, stressing that no single stakeholder can address it alone.
According to him, an effective response would require stronger collaboration between regulatory agencies, law enforcement and private sector actors, as well as improved public awareness.
“Effective action will require stronger collaboration between the public and private sectors, better regulatory alignment, consistent enforcement and increased consumer awareness,” he said.
Also speaking, the Director General of SWAN, Tony Okwoju, cited the findings of a 2024 Euromonitor survey which places the level of illicit trade in Nigeria’s spirits and wine market at around 40%.
“This means that for every five bottles sold, two are illegal. That alone gives you an idea of how huge the problem is,” Okwoju said.
He added that the financial impact on government revenues remains significant, with losses estimated at $428 billion per year.
Okwoju further disclosed that the association is working closely with regulatory agencies, including the National Agency for Food and Drug Administration, to curb the menace.
“Our members are continually working with enforcement agencies, not just NAFDAC, with the goal of addressing this issue. It’s an ongoing effort,” he said.
The association, however, warned that without consistent enforcement and coordinated action, the illicit alcohol market could continue to expand, with far-reaching consequences for public health, legitimate businesses and public finances.
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