After a recent increase in February, Nigerian Breweries plc has announced another increment in the price of its products as a result of the increase in production costs.
A letter dated Tuesday, February 12, 2024, indicated that the price review, effective from Monday, February 19, 2024, is deemed necessary to offset the impact of increased production expenses.
The PUNCH in Nigeria reports that, another press statement dated March 8, 2024, and signed by its zonal business manager Lekan Awosanya, was sent to customers around the West zone, announcing a new price increase.
This is the third time in less than a year that consumers will be paying more for their refreshments. The brewery said the new prices would take effect on Friday, seven months after the last reset.
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Nigeria Breweries is the largest and oldest brewery in the country, but last year, it recorded a net loss of 106bn naira ($66m: £53m) because the depreciation of the naira, the local currency, has made importing the ingredients more expensive.
In recent months, local manufacturers in many sectors have hiked product prices as the country faces the worst economic crisis in a generation.
Lack of access to foreign currency which would be used to import raw materials and the poor power supply are among key factors impacting the cost of production and doing business in Nigeria.
The high food and transportation costs have forced many into poverty.