Emmanuel Addeh in Abuja
Beer prices in Nigeria may rise further as brewers contend with sharply higher tax expenses and soaring electricity, gas, diesel, transportation and other operating costs that are squeezing their margins.
A report by The Drinks Business highlighted the mounting cost pressures confronting Nigeria’s major breweries, with the latest financial results showing that Nigerian Breweries, Guinness Nigeria and International Breweries collectively incurred N112.87 billion in tax expenses in the first half of 2026.
The figure represented an increase of about 58 per cent from the N71.39 billion recorded by the three companies in the corresponding period of 2025.
The higher tax burden came alongside persistent increases in energy and other operating costs, raising concerns about the ability of the brewers to continue absorbing the additional expenses without passing some of them on to consumers through higher beer prices.
The financial results filed with the Nigerian Exchange Limited (NGX) showed that although the three companies generally recorded stronger profit before tax in the period, increased tax expenses significantly affected their earnings after tax.
For Nigerian Breweries, tax expense rose to N63.37 billion in the first half of 2026, compared with N43.83 billion in the same period last year.
Its profit before tax increased by 18.2 per cent year-on-year to N156.33 billion, while profit after tax rose by only 5.1 per cent to N92.95 billion. The company’s effective tax rate also climbed to 40.5 per cent from 33.1 per cent a year earlier.
Guinness Nigeria also recorded a significant increase in its tax bill, with tax expense rising to N13.03 billion from N7.32 billion in the first half of 2025. Its profit before tax rose to N38.34 billion from N23.83 billion, while profit after tax increased to N25.30 billion from N16.51 billion.
However, its effective tax rate increased to 34 per cent from 30.7 per cent.
International Breweries recorded tax expenses of N36.47 billion in the first half of 2026, compared with N20.24 billion in the corresponding period of 2025.
Its profit before tax increased to N74.79 billion from N61.53 billion, but the company recorded a loss after tax of N38.31 billion, compared with a profit of N41.29 billion in the same period of 2025. Its effective tax rate also rose to 48.8 per cent from 32.9 per cent.
According to the report, the figures suggested that while the three brewers improved their pre-tax performance, rising tax liabilities and operating costs are taking a growing share of their earnings.
The pressure is particularly significant for an industry already facing elevated costs for electricity, gas, diesel, transportation and other inputs.
With manufacturers under increasing pressure to protect margins while keeping products affordable in a difficult consumer environment, the latest cost increases could ultimately translate into higher prices for beer consumers if the trend persists, it stressed.
Also, the development could further compound pressure on consumers already grappling with elevated living costs, while placing additional strain on breweries as they balance rising production expenses against weakening purchasing power.