Nigerian Breweries Plc has issued a new price review notification to all its customers in the West Zone.
In a letter dated Monday, February 12, 2024, the price adjustment, set to take effect on Monday, February 19, 2024, is deemed essential to counterbalance the effects of rising production costs.
“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 costs and the need to mitigate the impact,” the statement said.
The company assured customers that those who had 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 00.00 hrs on Monday, February 19, 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 adjustment in pricing by the FMCG company is thought to stem from escalating production expenses, compounded by fluctuations in foreign exchange rates.
It is noteworthy that, since January 2023, a minimum of seven multinational corporations have either departed from or disclosed their intention to depart from the country by December.
In March, Unilever declared its decision to withdraw its home care and skin cleansing operations from Nigeria.
Just four months later, in July 2023, GlaxoSmithKline Consumer Nigeria Plc, Nigeria’s second-largest pharmaceutical producer and a British pharmaceutical giant, announced the cessation of its manufacturing operations in Nigeria.
Similarly, following in the footsteps of GSK Plc, the French pharmaceutical multinational Sanofi declared its intention to cease operations in Nigeria.
Many of these companies have been conducting business in Nigeria for decades, while others are winding down their operations barely three years after entering the market.
Before 2023, both local and multinational manufacturers in Nigeria encountered challenges such as the power crisis, persistent devaluation of the naira, and limited access to foreign exchange, along with other stringent government policies.
However, significant changes occurred after President Bola Ahmed Tinubu’s inauguration on May 29, 2023, leading to inflation across all sectors.
In his inaugural address, President Tinubu announced the removal of fuel subsidies, impacting Nigerians across all socioeconomic strata, and instructed the Central Bank of Nigeria (CBN) to initiate reforms in monetary policy.
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