Some Nigerians have expressed divergent views over the recent increase in excise duty on tobacco and alcoholic beverages by the Federal Government.
While some believe the development will reduce the increasing crime rate witnessed in the country, others argue that it will lead to hike in prices of alcoholic drinks, both local and imported brands.
A fellow of the Chartered Institute of Bankers, Dr. Alaba Olusemore, told our correspondent that the crime rate was too high, saying that this development could be attributed to the high alcohol consumption, and it must be brought down.
He said, “When people take these products, they become ‘high’ and think they can commit any crime at any time and this makes it easier for them to turn to vices like armed robbery, kidnapping, rape and so on.
Increase in tariff will reduce importation and alcohol consumption
“The economy is not only about naira and kobo; it is about total value. If we can encourage people to import these products, there will be increase in total value, and to reduce crime, there is a need to review the consumption of these products. Therefore, government’s increase in the tariff will cause importation and alcohol consumption to be reduced.”
According to him, when price goes up, demand will reduce and when this happens, the consumption rate of the product will drop drastically.
He added that no matter the price, consumers would still take it “because it’s a habit and habits die hard, but the consumption will be reduced.”
The owner of Temple Café Bar, Mr. Cyril Mordi, explained that the increment was a welcome development for him, as his patrons were already complaining even when the directive had not been implemented.
Once it is implemented, he said prices of alcoholic drinks would go up and customers would not be happy.
Sharing Olusemore’s opinion, he admitted that consumers would still consume it, but the consumption would drop and this would affect sales.
He said, “It might not really affect our income because there are other local products to make up for the imported ones, which will not be that expensive, when compared to their foreign counterparts.
“The challenge is that people that go for five or six bottles before might only go for two or three bottles, reducing their intake; thereby reducing violence associated with alcohol consumption.”
Another bar owner, Mrs. Kudirat Omitogun, said, “Majority of men and women take alcohol as this is what some of them take to relax and calm their nerves, when frustrated due to the economic situation of the country.
“But when the price goes up, these people may be forced to go into depression, when they cannot afford it any more or some may even go into stealing, especially those that are addicted to it and are not financially buoyant.”
