Olufemi Adeyemi
Nigerian alcoholic lovers have been notified to brace themselves for a price hike effective August 10, 2023, by the country’s largest brewing company, Nigerian Breweries (NB) Plc.
The Nigerian Breweries Plc has issued a new price review notification to all its customers in the West Zone.According to a letter dated Monday, February 12, 2024, the price review, effective from Monday,
February 19, 2024, is deemed necessary to offset the impact of increased
production expenses.
“This is to inform you that we are constrained to review the
prices of some of our SKUs with effect from Monday, February 19, 2024.
“This review has become necessary because of continued
rising input cost and the need to mitigate the impact,” the statement indicated
The company assured customers that those who have fully paid
for orders before the specified date would be honoured at the existing prices.
However, orders exceeding the communicated quantity window
will be subject to the revised pricing.
“In appreciation of our great partnership and your
commitment, we will deliver at current prices all open orders that are fully
funded and created in our system before 00.00hrs on Monday 19th February 2024.
“The exact quantity of orders that will be allowed will be
communicated to you by your Regional Business Manager (RBM). Any order in
excess of this quantity will be re-invoiced at the new price on the 19th of
February 2024,” the statement added.
The price adjustment by the FMCG company is believed to have
been a result of the rising cost of production worsened by forex volatility.
In the last 11 months, at least five multinationals have
shut down operations in Nigeria, an analysis of separate notices filed by the
firms has shown.
In December 2023, another consumer goods giant, Procter
& Gamble, dissolved on-ground operations in the country.
The company explained that it was difficult to do business
in Nigeria as a dollar-denominated organisation and the macroeconomic reality
in Nigeria is responsible for its latest strategic decision.
Before P&G, Unilever also announced in March 2023, it
would fold up operations in the country.
According to the multinational, the changes in its business
meant it had to exit its home care and skin cleansing categories from Nigeria.