The Spirits and Wines Association of Nigeria (SWAN) has revealed that the Nigerian government forfeits an estimated N428 billion in revenue due to illegal activities within the sector.

President of SWAN, Michael Ehindero, stated this on Wednesday in Abuja at a workshop on combatting illicit trade.

Ehindero explained that the scale of illicit trade in the spirits and wines market continues to undermine legitimate businesses, distort competition, and weaken government efforts to maximise tax revenue from the industry.

He noted that unregistered producers and smugglers often bypass regulatory standards, flooding the market with substandard and sometimes unsafe products, thereby posing significant risks to public health and consumer safety.

He further stressed that the proliferation of counterfeit and illegally imported alcoholic beverages not only erodes the market share of compliant operators but also discourages investment in the sector.

According to him, the situation creates an uneven playing field where law-abiding companies struggle to compete against cheaper, untaxed products circulating widely across the country.

The SWAN president called for stronger collaboration among government agencies, industry stakeholders, and law enforcement bodies to address the challenge.

He urged authorities to tighten border controls, enhance monitoring of distribution channels, and impose stiffer penalties on offenders to deter illicit operators from continuing their activities.

Ehindero explained that while illicit trade is often discussed in economic terms, “the real tragedy is that illicit trade puts lives at risk — quietly, consistently, and often invisibly.

“When counterfeit or illegally traded products enter the market, the end consumer has no protection, no recourse, and no guarantee of safety. What looks like a cheaper option can become a life-threatening decision,” he stated.

He pointed out that illicit activities in the wine and spirits sector take various forms, including the circulation of counterfeit products, the production and sale of illegally made or adulterated alcohol, as well as smuggling and parallel imports that evade taxes, regulatory oversight, and safety standards.