The managing director and chief executive officer of Nigerian Breweries Plc, Thibaut Boidin, has warned that the planned tax stamp policy by the Nigerian government could cause a 100% decrease in profits across the brewing industry and destabilise the sector.

Speaking during the company’s 80th pre-AGM media briefing in Lagos, Boidin said manufacturers need policy predictability and fiscal stability to sustain investments and support economic growth.

According to him, while government reforms aimed at boosting revenue are understandable, some measures may create severe unintended consequences for industries already operating under difficult conditions.

A tax stamp is a regulatory mechanism where governments require a physical, high-security label or digital code to be affixed to excise goods such as alcohol, tobacco, and sugary drinks to prove that taxes have been paid.

Boidin noted that, tax stamps are typically introduced to curb illicit production and counterfeiting in sectors where illegal manufacturing is widespread.

However, he argued that such concerns do not exist in Nigeria’s formal brewing industry.

“Tax stamp is a way to control illicit production. It has been announced that a tax stamp will be implemented in Nigeria. This applies to manufacturers that are impacted by a lot of illicit production. Here, it is zero illicit production,” he noted.

He added that, if the policy is applied to the brewing sector, the financial consequences would be severe.

“The impact is a 100% decrease in the profits generated by the industry. We made a calculation, it is huge,” he said.

Boidin added that, beyond wiping out profitability, the policy could also reduce government earnings from the sector and trigger wider economic damage.