The Manufacturers Association of Nigeria (MAN) has cautioned that government plans to introduce a Tax Stamp System for excisable goods may compound Nigeria’s economic pressures, warning it could fuel inflation, suppress consumer demand, and undercut the country’s ability to compete under the African Continental Free Trade Area (AfCFTA).

In a statement signed by its Director General, Segun Ajayi-Kadir, on Tuesday, the association said the extra compliance costs from tax stamps would inevitably be passed on to consumers, many of whom are already struggling with high prices of essential goods.

“This will further shrink demand and push more people toward cheaper, illicit alternatives,” MAN said.

The group stressed that the measure would raise production costs for local manufacturers, placing them at a disadvantage against imports from other African economies. With AfCFTA seeking to create a level playing field for intra-African trade, MAN said Nigeria risks losing ground if domestic manufacturers are forced to operate under a heavier cost burden than their continental peers.

Gains of the 2025 Tax Act Under Threat

MAN acknowledged that the Nigeria Tax Act 2025 had delivered some relief to businesses by consolidating multiple levies, simplifying compliance, and lowering the cost of doing business. But it argued that tax stamps could unravel those gains by creating a “hidden tax burden” inconsistent with the spirit of the reforms.

“The 2025 reforms were meant to ease the cost of doing business and encourage investment. Introducing tax stamps risks reversing these achievements and discouraging industrial growth,” the statement said.

The association also questioned the effectiveness of tax stamps as a tool for combating smuggling and counterfeiting. It argued that global evidence shows limited success, with vendors supplying stamp technology often emerging as the biggest beneficiaries, while industries and governments see little impact.

According to MAN, instead of curbing illicit trade, higher product prices could push more consumers toward unregulated markets, while the risk of counterfeit stamps entering circulation could further complicate enforcement.

Although no official announcement has been made, MAN said it has reliable information that the government is considering the policy based on vendor proposals linking tax stamps to the fight against illicit trade.

The association reminded policymakers that a similar proposal was first floated in 2018 but was unanimously rejected by stakeholders across the board, a precedent it believes the government should not overlook.

Digital Solutions Already Exist

The group pointed out that Nigeria already operates digital systems capable of providing transparency and traceability in excise operations. Among them are the Nigeria Customs Service’s B’Odogwu Automated Excise Register System (ERS) and the Federal Inland Revenue Service’s e-invoicing platform.

“These home-grown systems give government the real-time visibility that tax stamps promise, without the additional costs and disruptions,” MAN noted.

It warned that layering a tax stamp regime on top of existing systems would only create bottlenecks and escalate compliance costs.

Lessons from Other Countries

MAN highlighted case studies from Kenya, Uganda, Tanzania, and Ghana, where tax stamp systems triggered high compliance costs, legal disputes, and complaints from industries. Despite these burdens, illicit trade persisted.

Even in advanced economies, the model has faced challenges. The United Kingdom recently reformed its stamp-based system after concluding that it was costly, ineffective, and confusing for businesses—an outcome that MAN urged Nigeria to consider before proceeding.

Considering Nigeria’s Fragile Business Climate

The warning from MAN comes against the backdrop of already mounting challenges for Nigerian manufacturers, who face some of the highest operating costs in Africa. The industry has long complained of rising energy prices, high borrowing costs from elevated interest rates, foreign exchange shortages, and multiple taxation at the federal, state, and local levels.

While manufacturers in peer African economies such as Egypt, South Africa, and Morocco are benefiting from lower financing costs and more stable energy supply, Nigerian firms have had to battle power shortages and diesel prices that make production significantly more expensive.

Adding tax stamps to this fragile operating environment, MAN argued, would not only weaken local players in regional competition but could also discourage new investments at a time Nigeria is seeking to attract foreign capital through AfCFTA.

While reiterating its willingness to contribute excise revenues, MAN called on the government to strengthen border controls, boost enforcement, and optimize existing digital platforms rather than adopt tax stamps. It further urged broad consultations with stakeholders and a transparent impact assessment before any final decision is taken.

Champion Breweries Plc has unveiled plans to launch a N58 billion capital raise programme, a bold move aimed at funding its acquisition of the Bullet brand assets and intellectual property, working capital needs, market expansion, and sustainability-focused investments.

The announcement was made during the company’s “Facts Behind the Figures” session at the Nigerian Exchange (NGX) on Monday, September 22, 2025. Company Secretary, Chief Tosan Aiboni, disclosed that the programme will be executed through a N42 billion public offer and a N16 billion rights issue.

According to the Managing Director, Inalegwu Adoga, proceeds will not only support the Bullet acquisition but also be channeled into technology upgrades such as Enterprise Resource Planning (ERP) systems, returnable packaging solutions, renewable energy adoption, and logistics transformation.

Growth Ambitions Anchored on Bullet

Champion Breweries is projecting a more than fivefold increase in revenue and a tenfold growth in profit after tax once the Bullet ready-to-drink (RTD) alcoholic brand is integrated into its operations. Management noted that the deal is expected to contribute over 70% of Champion’s topline while significantly expanding its foreign currency earnings across 14 African markets.

In H1 2025, the brewer had already recorded impressive momentum with a 111% surge in revenue and a 692% rebound in profit after tax, reflecting disciplined execution and a stronger market position even before the acquisition.

“This is a transformative moment for Champion Breweries,” Adoga said. “Bullet gives us scale, high-margin growth, and international reach. With this acquisition, we are evolving from a strong regional brewer into a multi-market, multi-category growth platform with international relevance.”

Champion’s majority shareholder, enJOYcorp, reinforced the ambition. Its Managing Director, David Butler, noted that the Bullet deal was a landmark in building African beverage brands capable of competing globally.

“Bullet expands Champion’s reach across Africa, diversifies its earnings into foreign currencies, and strengthens its portfolio with trend-driven products,” Butler said.

Performance Track Record

Champion’s financial performance in recent quarters underscores its confidence. The brewer posted a pre-tax profit of N1.7 billion in Q2 2025, a 268.95% rise compared to N465.4 million in the same period of 2024. For H1 2025, pre-tax profit stood at N3.4 billion, a major turnaround from a N333 million loss in H1 2024. Revenue from beer and malt sales climbed to N7.4 billion in Q2, up 44.18% year-on-year.

The company, incorporated in 1974 and headquartered in Uyo, Akwa Ibom State, has built a reputation over five decades of brewing excellence. Listed on the NGX, it produces a portfolio of beer and malt brands, and is now positioning itself as a continental player through the backing of enJOYcorp, its parent company.

Comparative Look

The strategy mirrors moves seen in Africa’s beverage industry over the past decade, where acquisitions and capital raises have become pathways to market dominance. For instance, AB InBev’s multi-billion-dollar consolidation of SABMiller in 2016 reshaped the African beer market, while Nigerian Breweries and Guinness Nigeria have both turned to capital raises in the past to strengthen balance sheets and fund expansion.

Champion’s approach differs in its focus on trend-driven RTD beverages and energy drinks, categories that are rapidly gaining share among younger consumers across Africa. By acquiring Bullet, it is not just competing with established brewers on beer but positioning itself in segments that global majors are also targeting for growth.

The timing is also notable as Nigeria’s brewing sector has been under pressure from rising input costs, inflation, and currency volatility. Champion’s recent profitability and its ability to attract shareholder backing for such a large raise suggest growing investor confidence in the company’s strategy.

What Lies Ahead?

Once completed, the Bullet acquisition will immediately boost Champion’s financials through foreign exchange earnings, a wider distributor network, and a stronger continental presence. Over the longer term, supply chain integration, ERP-led efficiencies, and sustainability investments could provide competitive advantages in a crowded market.

The N58 billion raise is more than a financing exercise for Champion, as many believe it is the springboard for transforming from a Nigerian regional brewer into an African beverage powerhouse.

In secondary school economics, they taught us the doctrine of specialization and core competencies. The wisdom was simple: find what you do well, sharpen it, and dominate your niche. But in today’s digital age, that mantra is being redefined. Technology has altered the cost structures of industries. The barriers to entering new markets are thinner, and firms are no longer confined to narrow lanes.

They taught us in the economics class that companies have to specialize and build core competencies.  They need to do things really well and be the best possible in their chosen domains. But today, especially in native tech companies, we think that does not overly make sense as technology has changed the cost of entering into new domains.

For technology companies, everyone is doing everything, even at top-level. Alphabet, Google parent company, is a car company, a search company, a medical company, an advertising juggernaut, fintech, etc. Amazon.com is an e-commerce firm, a publisher, a movie producer, a drone maker, and pharmacy chain.

Native technology companies embody this redesign—Google’s Alphabet is simultaneously a car company, an advertising titan, a health player, and a fintech. Amazon, from humble bookseller, is now a publisher, a studio, a logistics empire, and even a pharmacy. The new orthodoxy is this: in the digital economy, boundaries blur.

Indeed, when you examine IBM, the question is not what it does, but what it does not do. With Watson branching into finance, health, real estate, and beyond, “core competency” looks more like an expansive ecosystem of adjacencies. Yes, the economics of scope, and not just the economics of scale, is the playbook.

It is within this construct that Microsoft is pioneering new possibilities—solving problems not just in software but in the physics of silicon itself. AI workloads are colliding with the thermodynamic limits of chips, and the challenge of heat is real. Microsoft’s introduction of in-chip microfluidic cooling—tiny etched channels bringing coolant directly to the source—demonstrates how firms are redesigning not just markets, but nature’s constraints.

The implications are profound. By cooling chips more efficiently, Microsoft unlocks the promise of denser datacenters, cheaper computation, and new architectures like 3D chip stacking. This is more than engineering; it is strategic advantage in the age of AI.

And as Microsoft signals openness—inviting the world to adopt microfluidics—the lesson deepens: success in modern business is no longer about standing guard over a fortress of one competency. It is about orchestrating systems, shaping ecosystems, and reimagining boundaries. In this era of frenemies and convergence, the most innovative companies are not defined by what they do best, but by what new possibilities they can make feasible. And that connects back to the One Oasis which exists in all great firms

Microsoft Unveils Breakthrough in Chip Cooling to Power the Next Wave of AI