Champagne Exports From France to Nigeria Reach Lowest Level in 11 Years, Due to Inflation And Weak Naira
Champagne shipments from France to Nigeria have hit their lowest point in at least 11 years, largely due to factors such as rising inflation and a weaker naira, as per data compiled by BusinessDay.
Last year, the volume of champagne imports into Nigeria plummeted by 53.2 percent to 302,141 bottles from 646,036 bottles in 2022. Additionally, the value of these imports decreased by 49 percent to £12.9 million, according to Comité Champagne, a trade association monitoring export volume and value from France.
This decline brings Nigeria’s champagne imports nearly on par with the levels seen in 2020 (304,199 bottles). Consequently, Nigeria dropped from its position as the second-largest buyer among 48 African countries.
In 2023, Nigeria ranked as the fourth-largest importer of champagne in Africa, trailing behind South Africa (1.42 million bottles), Côte d’Ivoire (681,549 bottles), and the Democratic Republic of the Congo (360,451 bottles).
“The decline in the value of the naira affected the purchasing power of consumers, making them to buy less luxury products like champagne,” Babatunde Odumeru, managing director at Brand Finance Nigeria, said.
He said the naira, which has depreciated by more than 60 percent since June last year, affected brands.
Victor Ikem, a Lagos-based champagne and wine retailer, said apart from the rising inflation, the foreign exchange crisis that has increased the import duty rate has made many importers unable to sustain their imports.
“The reality is that most of the prices for premium to middle-level products have increased by almost 50-80 percent. The price increase meant that consumers were not able to buy the volume of champagne that they would not normally buy. So, there was a bit of trading down,” he added.
