Lagos, June 8, 2026 — The Lagos Chamber of Commerce and Industry (LCCI) has raised concerns over the Senate’s approval of the Sugar-Sweetened Beverage (SSB) Tax Bill, warning that it could place additional strain on Nigeria’s already pressured manufacturing sector.
The Director-General of LCCI, Dr Chinyere Almona, stated this in a release issued on Monday in Lagos, noting that while the chamber supports measures aimed at reducing excessive sugar consumption, such policies must be designed in a way that does not hurt businesses or consumers.
She explained that manufacturers are currently dealing with several challenges, including high energy costs, foreign exchange instability, rising interest rates, logistics constraints, multiple taxation, and weak consumer demand.
According to her, introducing further taxes on beverage producers could significantly raise production costs, which are likely to be transferred to consumers through higher retail prices.
She warned that this could intensify inflationary pressures and reduce demand for locally made products.
Almona further noted that the impact of the tax would extend beyond manufacturers, affecting supply chains such as raw material suppliers, distributors, transport operators, retailers, farmers, and other service providers linked to the sector.
She added that a decline in production due to higher taxes could result in reduced investment, lower factory utilisation, and possible job losses across the value chain.
The LCCI chief advocated a more balanced policy approach that combines public health education, product reformulation, clear labeling, consumer awareness campaigns, and broader stakeholder engagement.
She observed that in more developed economies, similar policies are often structured to encourage manufacturers to gradually reduce sugar content rather than simply increase prices.
According to her, Nigeria’s SSB tax framework should be integrated into a wider public health strategy and carefully designed to avoid disrupting industrial activity and employment.
Almona emphasised the need for a reformulation-driven model that encourages healthier product development instead of a purely revenue-focused tax regime.
She urged policymakers to properly assess the broader impact of the policy on agriculture, manufacturing, and supply chains before implementation, particularly in sectors that support large-scale employment.
She also called on the Federal Government and the National Assembly to reopen consultations with key stakeholders, including manufacturers, health professionals, organised private sector groups, and consumer representatives.
Almona said such engagement would help produce a more effective tax structure that encourages healthier products while protecting jobs and business sustainability.
She concluded that a well-balanced approach would ensure public health goals are achieved without undermining economic growth, industrial competitiveness, and employment stability.