By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has called on the House of Representatives to reject the proposed Sugar-Sweetened Beverage (SSB) Tax Bill, warning that the legislation could undermine Nigeria’s manufacturing sector, threaten jobs and increase costs for consumers.
In a statement issued by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE expressed disappointment over the Senate’s passage of the bill despite strong opposition from private sector stakeholders, particularly the Manufacturers Association of Nigeria (MAN).
The economic advocacy group argued that the proposed tax is ill-timed and inconsistent with the Federal Government’s efforts to reduce the cost of doing business and stimulate industrial growth.
According to CPPE, manufacturers are already contending with high energy costs, elevated interest rates, exchange rate volatility, logistics challenges, weak consumer purchasing power and multiple taxes and levies. It noted that imposing an additional excise burden on non-alcoholic beverage producers would further strain businesses and weaken competitiveness.
Yusuf described the food and beverage industry as a critical pillar of Nigeria’s industrial economy, contributing significantly to manufacturing output, employment and value chain development through its linkages with agriculture, packaging, logistics, retail trade and hospitality.
He warned that any additional tax burden on the industry would inevitably raise production costs, increase consumer prices, reduce demand, lower capacity utilisation and put thousands of jobs at risk.
He also expressed concerns about policy inconsistency, noting that the 2026 fiscal policy framework already provides for an excise duty of ₦10 per litre on non-alcoholic beverages.
Argued that introducing another tax through separate legislation would create regulatory uncertainty and send negative signals to investors, potentially undermining confidence in Nigeria’s business environment.
While acknowledging the importance of addressing the rising incidence of diabetes and other non-communicable diseases, he maintained that taxation alone is unlikely to deliver meaningful public health outcomes.
According to Yusuf, factors such as poor dietary habits, excessive consumption of carbohydrate-rich foods, physical inactivity, inadequate health awareness and genetic predisposition are among the major drivers of diabetes and related illnesses in Nigeria.
He urged lawmakers to focus instead on public health awareness campaigns, nutrition education, preventive healthcare, promotion of exercise and physical activity, and the development of infrastructure that supports healthier lifestyles.
He stressed that such measures would be more effective and sustainable than imposing punitive taxes on a key manufacturing subsector.
He therefore called on the House of Representatives to decline concurrence to the bill, describing it as anti-growth and detrimental to investment, employment and industrial development.
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He further urged lawmakers to prioritise policies that support enterprise growth, job creation and economic recovery while pursuing public health objectives through non-tax measures.
“The economy needs relief, not additional taxation; support for production, not policies that weaken enterprise; and reforms that create jobs, not measures that put them at risk,” the statement said.
He concluded that public health goals and economic growth can be pursued simultaneously through balanced policies that promote healthier lifestyles while protecting investment and employment.
