The Centre for the Promotion of Private Enterprise (CPPE), an NGO, has called on the House of Representatives to reject the sugar-sweetened beverage tax bill, describing it as ill-timed and insensitive to Nigeria’s current economic realities for manufacturers.
Chief Executive Officer Dr. Muda Yusuf made the appeal in a statement issued on Sunday in Lagos.
It was reported that the Senate had passed the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill 2025, aimed at reforming excise duties on sugar-sweetened beverages.
The bill also seeks to strengthen public health financing and address the growing burden of non-communicable diseases in Nigeria.
Yusuf, however, argued that the move was inconsistent with the Federal Government’s commitment to reducing the tax burden on businesses and would harm Nigeria’s manufacturing sector.
He expressed concern that the Senate proceeded with the bill despite strong objections from private sector stakeholders, particularly the Manufacturers Association of Nigeria (MAN).
He noted that manufacturers are already grappling with high energy costs, elevated interest rates, foreign exchange pressures, logistics challenges, weak consumer purchasing power, and multiple taxes and levies.
Yusuf emphasized that the food and beverage industry is a vital pillar of Nigeria’s industrial economy, contributing significantly to manufacturing output and employment.
He explained that the sector’s strong links with agriculture, packaging, logistics, retail trade, hospitality, and distribution make it a key driver of inclusive economic growth.
According to him, imposing additional taxes on the non-alcoholic beverage subsector would increase production costs, raise consumer prices, weaken demand, reduce capacity utilization, and threaten jobs across the value chain.
“The food and beverage industry is one of the strongest pillars of Nigeria’s industrial economy, accounting for a significant share of manufacturing output and jobs. The non-alcoholic beverages subsector is a major contributor to this ecosystem and should be supported, not burdened with additional taxes.
“Any extra tax burden would lead to higher production costs, increased consumer prices, weaker demand, lower capacity utilization, and job losses across the supply chain,” he stated.
Yusuf also voiced concern over policy inconsistency, noting that the 2026 fiscal policy framework already includes an excise duty of N10 per litre on non-alcoholic beverages.
He warned that further taxes via legislation would increase regulatory uncertainty and undermine investor confidence.
“Investors rely on predictability. Frequent tax hikes send the wrong signals to both current and prospective investors,” he said.
Regarding the public health rationale for the tax, Yusuf acknowledged the need to address rising diabetes and other non-communicable diseases.
However, he argued that sugar taxes alone have limited impact on health outcomes.
He pointed out that major drivers of diabetes in Nigeria include poor dietary habits, excessive carbohydrate intake, physical inactivity, sedentary lifestyles, low health awareness, and genetic factors.
He suggested that lawmakers should instead focus on nutrition education, public health campaigns, promoting exercise, healthier food options, preventive healthcare, and urban infrastructure that encourages active living.
Yusuf maintained that these measures would deliver more sustainable health benefits without harming production, investment, or employment.
He urged the House to oppose the bill to protect manufacturing sustainability, jobs, investment confidence, and policy coherence.
“The House has historically shown sensitivity to citizens’ welfare and the concerns of productive enterprises. We urge members to uphold that tradition by rejecting this legislation,” he concluded.
