Plunging government revenues may have pushed Nigeria to the brink of economic recession, but one global company that is in no hurry to pull the plug on Africa's largest economy just yet is SABMiller.With the cost of living rocketing, SABMiller is cashing in with its lower-priced offerings.In its latest quarterly update, the world's second-largest brewer reported double-digit revenue growth in Nigeria, driven by strong demand for its lager brands Hero and Trophy.SABMiller said group net producer revenue -- which excludes excise duties and other taxes - leapt 36% in the quarter ended June.Beverage volumes surged 25%, cementing Nigeria as the fastest-growing market in the 80 countries in which the company operates.The West African country is also one of its newest markets. Arriving late to the party, SABMiller entered Africa's second- largest beer market in 2009. SABMiller has been doing well in Nigeria for several years. But its performance in the quarter to June is slower than in previous quarters, reflecting the slowdown in the economy In contrast, Nigerian Breweries, a subsidiary of Dutch brewing company Heineken, and Guinness Nigeria, part-owned by global spirits group Diageo, have been in Nigeria for at least 50 years.Jeremy Cunnington, a senior alcoholic drinks analyst at Euromonitor, said SABMiller's strategy in Nigeria of focusing on the low end of the market had made it more resilient than its rivals in the economic downturn."As the economy has weakened, there has been a massive amount of trading down - to SABMiller's benefit and the detriment of its competitors, who have focused on the higher-price segments," he said.Beer is by far the most widely consumed alcoholic beverage, with volumes estimated at 1500million litres a year, compared with 101million litres for the spirits market.Nigerian Breweries, maker of bestseller Star lager, is the largest brewer, followed by Guinness Nigeria, maker of the country's most widely consumed stout beer.story_article_left1SABMiller is no stranger to Africa: its brewing operations span 17 countries and its alliance with French brewer Castel gives it access to a further 21 countries. It also has an associate in Zimbabwe.And although the brewer may have been late entering the country that investors regarded the crown jewel for growth in Africa before the price of oil - Nigeria's main source of income - nose-dived in 2014, its rate of growth there in the past six years has far outstripped that of its established rivals.In February, Guinness Nigeria reported a 9.8% decline in sales for the first half of 2016, citing the economic slowdown, which had eroded consumer incomes, as the major impediment to growth.Nigerian Breweries, the second-largest listed company on the country's stock exchange by market value, said sales grew just 4% in the same period.Robyn Chalmers, head of communications at SAB, ascribed the group's success in the tough operating market to its regional focus in southeastern Nigeria, which "insulated it from the broader economic challenges facing consumers in cities such as Lagos".Chalmers could not disclose the contribution Nigeria made to SABMiller's overall group sales, but said the Africa region contributed 29% of its $5.81-billion (about R82-billion) earnings before interest, taxes and amortisation in the 2016 financial year.Nigerian Breweries contributed about 10.4% of Heineken's €2.83-billion (about R45-billion) profit before tax last year .Cunnington doubted that SABMiller's strong performance could be maintained."Heineken and Diageo will fight back. Just as the category has changed quickly to SABMiller's advantage, so it could swing the other way," he said.SABMiller has not been completely unscathed by Nigeria's economic woes, which recently led retailers like Truworths and TFG to close shop because the country's tight hold on stock imports, foreign exchange and rising costs made running a business too difficult.Trevor Stirling, a UK-based analyst at Sanford C Bernstein , said: "SABMiller has been doing well in Nigeria for several years. But its performance in the quarter to June is slower than in previous quarters, reflecting the slowdown in the economy."The IMF recently slashed its growth expectations for Nigeria, forecasting a contraction of 1.8% this year from growth of 2.3% in April.It cited plunging oil revenues, weak investor confidence and increased insurgent attacks from rebel groups as major concerns.Nevertheless, Nigeria's economic downturn will not last, with the price of commodities, including oil, showing signs of recovery. And cracking it there will remain critical for any international company wanting to expand on the continent. This is especially so for brewing companies, since Nigeria, like the rest of Africa, has a much lower rate of beer consumption per capita than developed economies."Nigeria has huge potential," said Adriana Benedetti, senior brewers and beverages analyst at African Alliance."Right now consumers are under pressure, but the demographics are highly favourable," she said.Nigeria has a population of more than 187million."The downturn might be prolonged, but it will turn."petersf@bdfm.co.za..