A report compiled by Comité Champagne shows that Nigeria, Africa’s largest economy imported 644,452 bottles of Champagne estimated at N11.525 billion or £25.3 million in 2022.
This, according to the report is the highest import quantity in eight years and represents an increase of 15.3% from the preceding year.
Import of the luxury drink has been on increase since 2020 despite COVID-19 and other economic challenges that plunged the Nigerian economy into recession when the value of brent crude oil dipped to $15 a barrel. Yet, Nigeria’s elites, largely those responsible for the woes of the country won’t stop drinking champagne or celebrating.
While some experts attributed the increase in imports to growing consumer confidence post-COVID, stability in the financial services and a few other sectors, the nation’s key economic indicators show otherwise as economic activity remained generally weak with earnings hovering around their lowest while unemployment stood at a record high of 33.33%
Victor Ikem, a Lagos-based champagne and wine retailer, believed the upsurge in political activities in 2022 might have led to the increase in the luxury drink consumption.
He said, “throughout the second quarter till Q4 last year, there was an upsurge in political activities, which meant that a lot of disposable cash was available in the system and a number of high-profile political events were held which must have impacted on the consumption of champagne and other alcoholic beverages.”
However, the rise in champagne consumption is not across all segments of the economy, with only a small group of continuous orders from the affluent and political class.
Champagne has become a lifestyle drink that people use to signal aspiration value, their status and celebrate their achievements. Despite this, the demand and supply of luxury goods are not really affected by inflation levels in the country, but rather the wealth levels of the buyers and the ability to play within that space.
While champagne is associated with luxury, its high cost has made consumers seek cheaper alternatives such as wine. Data from Euromonitor International showed that Nigeria’s wine consumption rose to 33.1 million in 2021, the highest since 2015, from 32.0 million in 2020, with brands such as Chamdor and 4th Street performing strongly.