The breweries subsector of the Nigerian Exchange Limited (NGX) is facing mounting pressure as weak consumer demand, rising operating costs and higher taxes negatively impact the performance of listed companies, pushing their share prices into negative territory year-to-date (YTD).

This is despite improved earnings growth recorded by some of the major players in their half-year results.

Data from the Nigerian Exchange Limited (NGX) as of Tuesday, October 20, 2026, showed that International Breweries Plc, with market capitalisation of N1.68 trillion, had lost 29.8 per cent of its share price value since the beginning of the year, while Champion Breweries, with a market capitalisation of N113 billion, had depreciated by 28.6 per cent. Nigerian Breweries Plc achieved a marginal 0.3 per cent rise YTD.

Operators noted that the performance reflects the challenges confronting brewers as households contend with high living costs and reduced purchasing power, limiting demand for products that consumers may consider non-essential during periods of economic hardship.

According to them, a sustained recovery in the subsector will depend on improvements in household purchasing power, stronger consumer demand and the ability of brewers to adjust their pricing and operating strategies without further weakening sales volumes.

The operators expressed concerns about the impact of subdued consumer spending, excise duties and other operating expenses on the earnings prospects of breweries.

Executive Director of Halo Capital Management Limited, Dr Paul Uzum, said weak consumer demand was affecting several consumer goods companies, particularly those producing items that households could cut back on when their disposable incomes came under pressure.

He said investors were avoiding breweries because the difficult economic conditions facing Nigerian households had made it harder for companies in the sector to achieve significant sales growth.

According to him, beer and other alcoholic beverages face additional demand pressures when consumers prioritise essential spending over discretionary purchases.

Uzum also identified government taxation as another challenge confronting breweries, noting that repeated changes in excise duties had increased the pressure on companies’ operating costs and profitability.

“The sector has faced changes in excise duties on beer, stout, wine and spirits since June 2018, when revised rates took effect under the former administration.

Further changes in subsequent years have added to concerns about the industry’s cost structure.

“The combination of weak demand and higher fiscal obligations has put pressure on brewers’ margins, potentially making their shares less attractive to investors compared with companies in sectors benefiting from stronger earnings growth.

“The introduction of the 7.5 per cent value-added tax rate in February 2020 also formed part of the wider fiscal environment facing businesses, although the effect of VAT on breweries should be distinguished from the specific excise duties imposed on alcoholic beverages.”

Uzum added that these pressures had constrained the performance of companies in the breweries subsector and reduced their appeal relative to firms operating in sectors with stronger growth prospects.

A breakdown of the share price movement showed that International Breweries closed at N10 per share on Tuesday, down from N14 achieved at the beginning of the year. The decline places the stock among the weaker performers on the NGX over the period.

Champion Breweries also closed at N10 per share, compared with N14 at the start of the year, representing a 28.6 per cent decline. The stock has also come under pressure in recent weeks, losing about nine per cent of its value between September 21 and October 20.

Nigerian Breweries, the country’s largest listed brewer, closed at N75 per share on Tuesday, adding a marginal 0.3 per cent from N74. 80 kobo recorded at the beginning of the year.

The weak share price performance comes despite the positive performance recorded by brewers in their half-year results.