The Spirits and Wines Association of Nigeria (SWAN) has revealed that the federal government loses N428 billion in revenue annually to illicit trade in the sector.
The Director-General of SWAN, Tony Okwoju disclosed this on Wednesday in Abuja during a press conference at the end of the One-Day workshop on Combating Illicit Trade in the Spirits and Wines sector.
Asked how much the federal government was losing to illicit trade in the sector, he noted, “I think the government was losing something at the range of 428 billion in revenue annually.”
“This workshop has moved the conversation forward. We have identified practical, implementable strategies, from strengthening enforcement to improving regulatory alignment and raising consumer awareness. The focus now must be on execution.
“SWAN is committed to working with all stakeholders to ensure that the outcomes of today’s discussions lead to measurable progress,” he added.
Also, SWAN President, Micheal Ehindero noted that illicit trade in spirits and wines was not just an industry issue but national concern, saying it undermines consumer safety, erodes government revenue, and distorts fair competition.
He pointed out that sustainable solutions will only come from coordinated efforts across government, industry, and enforcement agencies,” Ehindero stated.
Speaking on factors that drive illicit trade in the sector, Ehindero stressed that it’s human nature, adding that there is an incentive for people to cheat.
He explained: “There’s an incentive for people to cheat or to have unsafe practices. People are looking for cheaper alternatives. The human desire for cheaper alternatives of products also drive these illicit businesses.
“There’s also systemic issues, probably some regulatory lapses. We also have situations where there’s a correlation between taxation of the industry… because if taxation is excess, then it opens the door for some of these things to happen.”
Ehindero, however, decried that people are unfortunately exposed to counterfeit products which lead to loss of lives.
The association said it has continually collaborated and engaged with the enforcement agencies, especially the National Food, Drug Administration and Control (NAFDAC).in fighting the scourge.
On his part, the Managing Director, Alliance Against Counterfeit Spirits (AACS),David Francis.said illicit or counterfeit products have their own particular dangers related to unregulated production and uncontrolled production.