The brewed products sector in 2025 recorded a return to profitability in 2025 in spite of persistent pressure on consumer purchasing power, Nigerian Breweries Plc has said.
Juliet Anammah, Chairman of the Board, revealed this on Thursday in Lagos via the company’s 2025 annual reports and accounts.
The Chairman noted that while macroeconomic reforms and stabilisation measures improved key indicators in 2025, translating these gains into better household incomes and living standards remained a major challenge.
She added that cost pressures, cautious consumer spending, and intense competition led to a single-digit volume decline across the sector, with performance in the second half of the year weaker than the first.
Nevertheless, Anammah stated that the sector recorded a strong rebound in financial performance driven mainly by pricing actions and consumer activations.
“After consecutive years of net losses, the published results of all players showed that 2025 marked a return to profitability for the sector and our company was a big example of this sectoral rebound.
“We sustained our market leadership position driven by increased competitiveness through appropriate pricing, our premium portfolio play, enhanced route to market and sustained relationship with trade partners,” she said.
For 2026, the Nigerian Breweries board chair said that initial projections showed the year would deliver macroeconomic stability and growth following government reforms.
She, however, warned that recent geopolitical tensions in the Middle East had disrupted the outlook, pushing crude oil prices above 100 dollars per barrel and increasing energy costs in Nigeria.
She said the development could heighten foreign exchange risks, trigger supply chain disruptions, and sustain inflationary pressures.
Anammah referenced projections by the Central Bank of Nigeria, which forecast a 4.49 percent Gross Domestic Product (GDP) growth and average inflation of 12.94 per cent for 2026 under baseline assumptions.
She added that risks such as infrastructure gaps, insecurity, adverse weather conditions and lower oil output could further constrain performance.
She also expressed concern over a proposed tax stamp regime for excise verification and product tracking.
According to her, the sector has maintained compliance with existing excise regulations, warning that additional taxes or complex systems could weaken productivity and reverse recent gains.
“The industry is still recovering from volume declines recorded in recent years, and additional regulatory burdens may undermine this recovery,” she said.
Anammah revealed that Nigerian Breweries would also mark its 80th anniversary of operations in Nigeria in 2026, celebrating decades of contributions to shareholders, government and communities.
“Nigerian Breweries Plc is proud to be one of a select group of companies that has not only withstood the ups and downs of an ever changing and challenging business environment but has remained one of Nigeria’s topmost companies over the last eight decades,” she said.
The Managing Director of the company, Thibaut Boidin, during the company’s 2026 Pre-Annual General Meeting, noted that the brewing industry continued to face significant headwinds, particularly from declining consumer purchasing power driven by persistent inflationary pressures.
According to Boidin, both official and perceived inflation levels have constrained consumer spending, contributing to a decline in the overall beer market in recent years.
He added that external shocks, including tensions in the Middle East, had further impacted Nigeria’s economy, exacerbating existing challenges.
