Lagos, June 8, 2026 — The Centre for the Promotion of Private Enterprise (CPPE) has called on the House of Representatives to turn down a proposed bill seeking to impose taxes on sugar-sweetened beverages, describing the move as poorly timed and harsh on manufacturers already facing economic pressure.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, made this known in a statement released on Sunday in Lagos.
The Senate had earlier approved the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill 2025, which seeks to review excise duties on sugar-sweetened drinks. The legislation also aims to boost public health funding and address the rising incidence of non-communicable diseases in the country.
Yusuf, however, argued that the proposal contradicts government efforts to ease tax burdens on businesses and could further strain Nigeria’s manufacturing sector.
He noted that private sector stakeholders, including the Manufacturers Association of Nigeria, had raised objections before the bill’s passage, but their concerns were not adequately addressed.
According to him, manufacturers are already grappling with high energy costs, expensive borrowing, foreign exchange instability, logistics challenges, weak consumer demand, and multiple layers of taxation.
He described the food and beverage industry as a major component of Nigeria’s industrial base, contributing significantly to output, employment, and economic linkages across agriculture, packaging, logistics, retail, hospitality, and distribution.
Yusuf warned that additional taxes on non-alcoholic beverages could push up production costs, increase retail prices, weaken demand, reduce factory output, and put jobs at risk throughout the value chain.
He also stressed that the sector plays a central role in job creation and should be supported rather than subjected to further fiscal pressure.
He further raised concerns about policy inconsistency, pointing out that the 2026 fiscal framework already provides for an excise duty of N10 per litre on non-alcoholic beverages.
According to him, introducing extra levies through new legislation could create uncertainty, discourage investment, and weaken confidence in the regulatory environment.
On the health justification for the tax, Yusuf acknowledged concerns about diabetes and other non-communicable diseases but questioned the effectiveness of sugar taxes as a standalone solution.
He attributed rising health challenges more to poor diets, high consumption of carbohydrate-heavy foods, sedentary lifestyles, limited health awareness, and genetic factors.
He instead recommended broader interventions such as nutrition education, public health campaigns, promotion of physical activity, improved access to preventive healthcare, and urban planning that encourages active living.
Yusuf insisted that such measures would deliver stronger and more sustainable health outcomes without undermining production, investment, and employment.
He urged lawmakers in the House of Representatives to reject concurrence to the bill, stressing the need to protect industrial growth, jobs, and policy stability.
In his words, he called for a legislative decision that safeguards manufacturing sustainability, employment, and investor confidence while maintaining coherence in fiscal policy direction.