Nigeria Consumers Brace for Impact as Nigerian Breweries Responds to Economic Pressures with Second Price Hike in Two Months

Nigerian Breweries Plc has announced another round of price increases for its products, marking the second adjustment in just two months. The company, in a review notification distributed to customers in the South-West zone, revealed that the new prices would come into effect from March 15, 2024.

This decision follows a similar move made in February, where the company cited the necessity to offset rising production expenses. With the Nigerian economy grappling with challenging macroeconomic conditions and a depreciating naira, manufacturers, especially in the Fast-Moving Consumer Goods (FMCG) sector, have faced substantial increases in input costs over the past year.

Nigerian Breweries' struggles are indicative of a broader trend within the industry, as companies grapple with inflation, currency depreciation, and dwindling consumer spending. Despite the company's assurances of continued support to distributors, the ongoing economic challenges have contributed to a net loss of N106 billion for Nigerian Breweries in the fiscal year ending December 2023, driven primarily by significant FX losses amounting to N153 billion.

The repeated price hikes signal a challenging road ahead for both the company and consumers.