New Beer prices to take effect Friday

 

By Abimbola Tooki

The Nigerian Brewery has disclosed that the new prices of its products would take effect on Friday, one month after the last adjustment.

This development is consequent upon the rising cost of production and the general rise in the cost of living in the country.

This is the third time in less than a year that consumers will be paying more for their refreshment.

Nigeria Breweries is the largest and oldest brewery in the country, but last year, it recorded a net loss of N106 billion ($66m) because the depreciation of the naira The deprecitation of the naira has made importing the ingredients more expensive.

Nigeria is one of the countries in Africa with highest number of alcohol consumers. The continent is home to 16 per cent of the world’s population but consumes just five per cent of the world’s beverage alcohol. That low per capita consumption translates into considerable potential. The continent’s hot climate is expected to exaggerate the demand for beer and big brewers are investing for the future.  

Nigeria in particular is seen as a ‘hidden jewel’ by Anheuser-Busch and this justified a huge investment of about $600 million in brewery in Nigeria abd South Africa in the last five years

In recent months, local manufacturers in many sectors have hiked product prices as the country faces the worst economic crisis in a generation.

Lack of access to foreign currency which would be used to import raw materials and the poor power supply are among key factors impacting the cost of production and doing business in Nigeria.

The high food and transportation costs have forced many into poverty.