Amidst economic challenges and a weakening national currency, Nigeria has witnessed a significant decline in champagne imports from France, reaching the lowest point in at least 11 years.
BusinessDay’s data analysis reveals a 53.2% drop in import volumes, with 302,141 bottles in 2023 compared to 646,036 bottles the previous year.
The value of the imports also plummeted by 49%, totalling £12.9 million. Several factors, including rising inflation, a weakened naira, and foreign exchange difficulties, contribute to the substantial reduction in champagne consumption.
Once the second-largest champagne importer among 48 African countries, Nigeria has now slipped to the fourth position.
The economic challenges, increased import duty rates and a general economic downturn, have resulted in higher prices for premium products, prompting consumers to cut back on their purchases.
Victor Ikem, a Lagos-based champagne and wine retailer, highlighted that the foreign exchange crisis, which has increased import duty rates, has made it challenging for importers to sustain their imports.
Additionally, the inflation rate in Nigeria has accelerated over the past nine months, reaching a record high. The headline inflation rate rose to 29.90% in January 2024, impacting consumers’ purchasing power.
Globally, champagne shipments faced challenges, declining 8.2% to 299 million bottles in 2023.
Despite the drop, the Union des Maisons de Champagne remains optimistic about the future, acknowledging the sensitivity of the champagne market to geopolitical and economic factors.
Champagne, known for its association with luxury and celebrations, holds cultural significance in Nigeria, often being the preferred choice for special occasions.
However, economic challenges have forced consumers to trade down and reconsider their spending on such premium items.
