Nigeria’s brewing sector has appealed to the Federal Government to abandon plans to introduce tax stamps on excisable goods, warning that the measure could trigger production disruptions and worsen the country’s inflation crisis.

Speaking ahead of the Nigerian Economic Summit scheduled to begin October 6, Executive Director of the Beer Sectoral Group (BSG), Abiola Laseinde, urged government to sustain existing home-grown digital excise systems rather than introducing tax stamps also known as track-and-trace identifiers, which she described as counterproductive.

The industry’s concerns echo recent warnings from the Manufacturers Association of Nigeria (MAN), which cautioned that the proposed tax stamp system could compound economic pressures and fuel consumer price increases.

Laseinde stressed that the application of tax stamps in the beer sector would not address illicit trade, as counterfeiting is virtually non-existent due to the complexity of the brewing process, the bulkiness of beer products and their low resale value. She added that the industry already maintains strict compliance with excise rules, backed by digital counters, on-site Customs officers and auditable records.

He urged the government to consolidate on ongoing reforms such as the Nigeria Customs Service’s B’Odogwu Excise Reporting System (ERS) — a modern platform that digitises excise administration, tracks production volumes in real time and creates an auditable trail to reduce leakages.

“ERS and FIRS e-Invoicing are effective, transparent and locally developed systems. What the government should do is strengthen them, not impose additional hurdles through tax stamps,” Laseinde said.

The Nigeria Customs Service has reported that its B’Odogwu digital system generated N230 billion in revenue since its launch in October 2024, demonstrating the effectiveness of existing digital solutions.

Laseinde argued that the B’Odogwu Excise Reporting System (ERS) already tracks production volumes and excise computation in real time, enhances compliance monitoring through transparency, and creates an auditable digital trail that reduces revenue leakages.

The BSG urged the government to rescind the proposed tax stamps rollout to protect jobs and revenues, consolidate existing digital systems, shield local industry from capital flight to foreign tax stamp vendors, and preserve government revenues by avoiding policies that have failed in other jurisdictions.

The appeal comes as stakeholders prepare for economic policy discussions, with the beer industry emphasizing its commitment to supporting revenue generation through transparent and efficient frameworks that protect both government interests and business sustainability. (THE GUARDIAN)

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