Nigeria’s major brewers face financial difficulties after a combined loss of N169.7 billion in the first quarter of 2024. This significant setback, compared to a total loss of N54.3 billion the same time last year, is attributed to rising interest rates and naira devaluation.
Experts point to the weakened naira as a key factor. This has caused a surge in production costs for breweries, many of whom have significant dollar-denominated debts. The devaluation has also decreased purchasing power, further impacting their bottom line.
The beer industry is a significant contributor to the Nigerian economy, and these losses raise concerns about its future growth.
Source: Business Day