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Beer Industry

Nigeria’s leading beer manufacturers are drunk with success

The potential of Nigeria’s beer industry can be gauged by the amount of attention and investment lavished on it by some of the world’s pre-eminent beer manufacturers – both Diageo and Heineken are extremely active in the market. With the largest population on the African continent, the country’s beer consumption is 6.5 litres per person and the beer market size is 12.67 million hectolitres. The beer market grew by 14.3% in 2007, and is projected to rise by another 7.9% in 2008. Beer is the most popular alcoholic drink in the country, accounting for around 96% of all alcohol sales.

The industry has been helped in the last number of years by government intervention – in 2002, the excise duty on alcohol was reduced from 40% to 20% per litre. The introduction of Islamic Sharia law in some of the country’s northern states in 2000, which banned the sale and consumption of alcohol, failed to have much effect on alcohol production or consumption – many continued to consume alcohol at home, and alcohol in these states can still be sold in military barracks, which are considered Federal territory and thus beyond state law.   


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