Brewers to FG: Tax stamps rollout could worsen inflation
The beer industry has called on the federal government to sustain existing home-grown digital systems that deliver full visibility of excise operations and reject the proposal to introduce tax stamps, which has unintended consequences on the productivity of the industry and revenue generation.
The industry described tax stamps (digital identifiers also referred to as tack and trace systems) as counterproductive, stating that they present operational challenges and financial risks that could undermine the fragile recovery of the industry and the Nigerian economy.
According to Abiola Laseinde, executive director, Beer Sectoral Group of the Manufacturers Association of Nigeria (MAN), the tax stamps system is largely inefficient, causing production slowdowns, distribution delays, product stock-outs, and high compliance costs.
Read sldo: Nigeria’s proposed tax reform seen curbing inflation
“Industry is concerned that this proposal is coming at a time when operators are already grappling with rising excise rates, foreign exchange volatility, and high inflation—making the additional burden of implementing tax stamps a serious threat to business sustainability,” Laseinde said.
“Furthermore, tax stamps, which are often positioned as a solution to illicit trade, would have no benefit to beer, as there is zero illicit trade in the sector. The brewing process is complex, the product is bulky, and resale value is low, making counterfeiting unprofitable. It is also pertinent to note that the beer industry already maintains strict compliance, with digital counters, on-site Customs officers, and auditable records in place.”
Laseinde further said that the federal government has already invested in digital systems that deliver full visibility of excise operations.
“Most recently, the Nigeria Customs Service (NCS) successfully launched and piloted the B’Odogwu automated Excise Reporting System (ERS), a modern platform that digitises excise administration. ERS replaces manual registers with an automated process that tracks production volumes and excise computation in real time, enhances compliance monitoring through full transparency, and creates an auditable digital trail that reduces leakages and inefficiency.”
Read also: Nigeria’s inflation outlook: A turning tide amid policy coordination
She urged the government to rescind the proposed rollout of tax stamps to avert disruption to production, jobs, and revenues, while consolidating and strengthening existing systems like Customs’ ERS and FIRS e-Invoicing, which are effective, transparent, and locally driven.
“Protect the local industry and jobs from avoidable financial burdens and capital flight to foreign tax stamp vendors. Preserve government revenues by avoiding policies that have failed elsewhere and would undermine compliance in Nigeria.
“The industry remains committed to supporting revenue generation under frameworks that are effective, transparent, and efficient, while protecting government interests and business sustainability without creating unnecessary operational hurdles.”
