Report: Nigeria Earned $2.29bn In 2019 From Beer Sales

According to a study released yesterday by Oxford Economics for the Worldwide Brewing Alliance (WBA), Nigeria earned $2.294 billion in 2019 from the sale of beer.

Mr. Adeniyi Adebayo, Minister of Industry, Trade and Investment, also expressed the federal government’s willingness to assist beer producers in staying in business in the face of daunting challenges yesterday.

Nigeria was also ranked 30th out of 70 top global beer markets in the report “Beer’s Global Economic Footprint,” which was published by Oxford Economics in January 2022. According to a report released yesterday, 70 countries controlled 89 percent of global beer sales.

Read Also:  FG Directs 4 Ministries, 11 Northern States To Combat Drought, Desert Encroachment

According to the report, which was described as the first-ever global assessment of the beer industry’s global economic impact, one out of every 110 jobs in the world was linked to the beer sector through direct, indirect, or induced impact channels.

According to the report, the beer industry contributed $555 billion in gross value added (GVA) to global GDP in 2019 and helped governments generate $262 billion in tax revenue in the 70 countries studied. According to the report, this accounted for 89 percent of all beer sold worldwide and supported 23.1 million jobs.

Mr. Adrian Cooper, the Chief Executive Officer of Oxford Economics, who presented the report during a webinar, stated that the beer sector is well positioned to contribute to the post-COVID global economic recovery because its economic significance is greater in faster-growing economies and it is triggering significant economic activities in agriculture, distribution, and the hospitality industry.

According to Oxford Economics, the beer industry is important to economies all over the world and has an impact on all aspects of the beer value chain, including brewers, distributors, retailers, and the hospitality industry, as well as the suppliers they rely on.

According to Oxford Economics, the study was based on “2019 data” (instead of 2020). Because of the distortions caused by COVID-19, we can show this. Because of the pandemic’s effects, 2019 is more like a typical year for the beer industry.”

“While making and delivering the beer people love, the beer sector’s activities sustain significant amounts of GDP, jobs, and government revenue in economies around the world,” it continued.

“Brewers and the beer industry’s downstream value chain make significant direct contributions, have significant indirect impacts by purchasing goods and services from their suppliers, and stimulate additional economic activity by paying and supporting wages throughout the supply chain.”

Read Also:  Omokri Reveals How To Put End To Ritual Killings, Yahoo Yahoo In Nigeria

“We estimate that the beer sector’s total economic impact in 2019 will be $555 billion in gross value added (GVA), supporting 23 million jobs, based on our detailed analysis across 70 countries.” In total, the beer industry supported 0.8 percent of GDP in the 70 countries studied, or $1 for every $131 of GDP generated.

“To put that in perspective, the beer sector’s GVA contribution to global GDP in 2019 ($533 billion) is comparable to Belgium’s ($533 billion), and the number of jobs supported is equal to the entire Italian labor force (23 million people).”

It’s worth noting, according to the report, that the beer sector’s economic importance is greater in low-income countries.

“While the beer sector contributed an average of 0.9 percent to national GDP in high-income countries, the equivalent figure in low-income economies is 1.6 percent,” it continued. Similarly, the beer industry employs a higher proportion of people in low-income countries than it does in high-income countries (1.4 per cent vs. 1.1 per cent of national employment). The beer industry also contributes a significant amount of money to international governments in the form of tax payments.

“Brewers and their downstream value chain are estimated to have made and supported $262 billion in tax payments to governments around the world.” The VAT and excise duties paid on beer sales account for $109 billion of the total tax contribution.”

“While many previous studies exist for individual countries, none have ever attempted a rigorous, coherent estimate of the global impact with the same metrics at the same time, nor have they fully considered elements of international trade like the importance of barley and hops from certain countries,” said Mr. Justin Kissinger, President and Chief Executive Officer of the WBA. The report shows that beer has a positive impact on the economy.”

In a similar vein, Ms. Brandy Rand, the IWSR Drinks Market Analysis’ Chief Operating Officer for the Americas, said that while the beer sector has been able to grow its market and have a better H1 2021 than spirits and wine, it has remained behind its H1 2019.

“As the moderation trend solidifies, no and low alcoholic beer is the most resilient and fastest-growing segment of beer,” Rand said.

Meanwhile, Adebayo was quoted in a statement as saying that the government was fully aware of the challenges facing the manufacturing sector and was doing everything in its power to address them. The Beer Sectoral Group of the nation’s manufacturing sector was led by the Managing Director of International Breweries, Mr. Hugo Pius Rocha.

Mr. Tony Eneh, the secretary of the beer sectoral group, listed the challenges facing beer producers in his presentation to the minister, including devaluation, limited access to foreign exchange, insecurity, escalating logistics costs, COvid-19, ease of doing business, increasing excise duty, multiplicity of taxes, and tax stamp.

Despite an increase in the annual taxes paid by beer producers, he noted that their net profit had been declining due to the various challenges they had listed.

Read Also:  Convention: APC Ready To Roll, Appoints Abdulrazaq Zoning Committee Chairman

Eneh requested the minister’s assistance in obtaining an excise deferment for the years 2022 and beyond, as well as assistance with ministerial engagements, foreign exchange access, and closer engagement between the Minister and the beer industry.

Adebayo reacted by saying he was willing to help the industry by engaging his colleagues on some of the issues raised in their presentations.

On the subject of forex, he said he had received assurances from the Central Bank Governor that manufacturers who use local raw materials in their bid to import machines would be given special consideration.