Nigeria loses N428bn yearly as illicit alcohol trade expands
Nigeria is losing more than N428 billion in potential government revenue every year to the illicit and unrecorded alcohol market, highlighting the growing economic and public health costs of a trade that authorities now seek to tackle through a new five-year policy framework.
The Federal Government disclosed the figure in Abuja during the launch of the Nigeria Alcohol Policy and Multisectoral Implementation Plan for 2026–2030. Industry estimates presented at the event indicate that illicit or unrecorded products account for about 40 per cent of spirits and wines consumed in the country, raising concerns over lost revenue, product safety and unfair competition for legitimate businesses.
Beyond the financial losses, authorities warned that harmful alcohol consumption is linked to a range of social and health problems, including injuries, disease, violence, mental health challenges and reduced productivity. The government also pointed to road safety concerns, with 9,570 road crashes and 5,421 deaths recorded nationwide in 2024, while driving under the influence remains among the factors associated with road traffic incidents.
The new policy is designed to bring health, finance, trade, industry, regulation and other sectors under a coordinated approach to alcohol control. Its priorities include reducing alcohol-related harm, strengthening regulation and monitoring, improving accountability and research, and supporting responsible development of the legitimate alcohol industry. The government says the success of the 2026–2030 plan will ultimately depend on its implementation and its ability to reduce harmful consumption, protect consumers, curb illicit trade and recover economic value currently being lost.
