ABUJA, Nigeria — Nigeria loses an estimated N428 billion in revenue annually to the illicit trade of spirits and wines, according to Tony Okwoju, Director-General of the Spirits and Wines Association of Nigeria (SWAN) , who spoke at a stakeholders’ workshop in Abuja on April 23, 2026.
Okay News reports that Okwoju disclosed the figure at the end of a one-day workshop focused on combating illicit trade in the spirits and wines industry, citing a 2024 survey which found that approximately 40 percent of spirits and wines sold in Nigeria are illicit.
“The 40 percent estimate means that two out of every five bottles in circulation are illegal,” Okwoju said. He explained that illicit trade includes smuggled, tax-evaded, counterfeit, and parallel market products.
“In terms of value, the government is losing something in the range of N428 billion in revenue,” he added.
SWAN Managing Director Michael Ehindero said the workshop brought together more than 800 participants, including regulators, policymakers, enforcement agencies, and industry operators. He stressed that illegal alcohol undermines legitimate businesses, reduces government revenue, and threatens consumer safety.
Participants identified key drivers of illicit trade, including demand for cheaper products, regulatory gaps, and tax pressures. They noted that counterfeit alcohol has been linked to serious health risks and fatalities in some cases.
Nigeria’s spirits market continues to expand, driven by changing consumer preferences and demographic trends. Bitters account for approximately 38 percent of the market, followed by whiskey and vodka at 15 percent each, and gin at 10 percent. Average weekly spending on spirits is approximately N7,614, although most consumers spend below N5,000.
Industry experts have warned that potential regulatory restrictions on affordable packaging formats such as sachets and PET bottles could shift demand further toward unregulated and illicit products if not carefully managed.
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