Beer prices in Nigeria face another potential increase as higher taxes and operating costs put pressure on the margins of the country’s largest brewers.
Nigerian Breweries, Guinness Nigeria and International Breweries recorded combined tax expenses of ₦112.87 billion in the first half of 2026, up about 58 per cent from ₦71.39 billion a year earlier. The increase came as brewers continued to absorb higher electricity, gas, diesel, transport and other production costs.
The pressure is showing up differently across the three companies. Nigerian Breweries recorded ₦63.37 billion in tax expense, up from ₦43.83 billion in H1 2025. Profit before tax rose 18.2 per cent to ₦156.33 billion, but profit after tax grew only 5.1 per cent to ₦92.95 billion.
Guinness Nigeria’s tax expense increased to ₦13.03 billion from ₦7.32 billion. Its profit before tax rose to ₦38.34 billion, while profit after tax reached ₦25.30 billion. International Breweries recorded the sharpest deterioration after tax. Its tax expense rose to ₦36.47 billion from ₦20.24 billion, while profit before tax increased to ₦74.79 billion. The company nevertheless posted a ₦38.31 billion loss after tax, compared with a ₦41.29 billion profit in H1 2025.
The timing matters. Nigeria’s new 2026 to 2028 excise schedule took effect on 1 July, raising the specific excise rate on beer and stout to ₦72 per litre. Brewers have already challenged parts of the framework, including proposed tax stamps and traceability requirements.The industry has also raised concerns that additional compliance costs could feed into production economics.
For consumers, another round of price increases would come after brewers already raised selected prices in March. The question for the sector is increasingly about how much of the cost can still be absorbed without further weakening demand.
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