Nigerian Breweries Moves to Shield Operations from Economic Headwinds

Nigerian Breweries Plc has assured stakeholders and consumers that it is improving its operations to mitigate critical risks such as supply chain interruptions caused by the Middle East crisis, currency volatility, and rising inflation, notably food inflation.

During Thursday’s 80th pre-annual general meeting media briefing in Lagos, the company discussed strategies to continue growth and safeguard consumers from price shocks.

NB Plc Finance Director Maria Karaseva explained the measures, saying the brewer had identified three significant external risks and was actively managing them to improve resilience.

She pointed out that Heineken’s financial moat kept the company relatively safe.

Karaseva said, “We are pulling out three factors, and they have different impacts on us. First is the sustainability of supply driven by the Middle East crisis, which affects our ability to maintain consistent production levels and meet market demand.

“Here we are relatively in control. We are part of the Heineken Group. Heineken is our major investor. We are relying on the proven supply cusps and tracks. We are tracking regularly the sustainability of our supply. We see no big issues coming out of Nigeria from what is going on.”

Karaseva added that the company was leveraging its relationship with its majority shareholder to cushion potential supply shocks.

Regarding currency volatility, she stated that the firm was implementing financial hedging methods to protect its business, particularly in response to the naira’s instability, which has fluctuated dramatically against major currencies.

“The second thing is the instability of the naira. We have observed it so far. The naira passed the stress test when the crisis happened,” she noted. “It continues to be stable, and I should say that this is fundamental for the economy of Nigeria to have a stable currency. We really ask the government to continue with its efforts to keep the naira’s stability in place. From our side, we are also using financial instruments and tools to protect us against potential volatility.”

Addressing inflationary pressures, particularly rising food prices, Karaseva said the company was focused on maintaining affordability for consumers through flexible pricing strategies.

She said, “The third factor on the macro level which can impact us is the rise in inflation, especially in food. We, as Nigerian communities, feel a responsibility as leaders of this category. We feel responsible for what happens with the price of the products and the affordability of our products to the consumers. So we are doing all that we can.

“We have a very wide tool set on how not to take pricing further in this difficult environment. We have global food practices which we are bringing to Nigerian ground to contain pricing inflation.”

The finance chief added that the company was building a resilient structure capable of absorbing shocks if conditions worsen.

Karaseva said, “So these are the major risks, and we are on a pathway to build a resilient structure which will help us to absorb those shocks at least if they don’t escalate any further.”

Thibaut Boidin, Managing Director/CEO, noted that the operational environment remained turbulent, citing inflation, foreign exchange challenges, and limited purchasing power.

He said, “It’s not a secret that we’re operating in a very volatile environment, a very complex environment. (Although) In 2025, we can all recognise that the macroeconomic environment was a bit more stable than in the previous years, but we remain dependent on FX, and purchasing power remains under pressure.”

Boidin noted that the Middle East crisis continued to pose risks to the broader economy, while inflation had constrained beer consumption due to reduced disposable income.