By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has rejected calls for additional taxation on sugar-sweetened beverages (SSBs), describing the proposal as ill-timed and potentially harmful to Nigeria’s fragile economic recovery.
In a policy brief released on Tuesday, the CPPE faulted the recommendation by the Corporate Accountability and Public Participation Africa (CAPPA), arguing that imposing new taxes on the beverage sector contradicts the Federal Government’s ongoing tax reform agenda aimed at reducing the burden on businesses and stimulating investment.
The policy brief was signed by Dr. Muda Yusuf, Chief Executive Officer of the CPPE, on March 24, 2026.
The organisation noted that Nigeria’s business environment remains under severe strain, citing high inflation, elevated interest rates, rising energy costs, and exchange rate depreciation as major challenges confronting manufacturers.
It stressed that the beverage industry, being highly energy-intensive, is particularly vulnerable to these pressures.
According to the CPPE, energy costs driven by sharp increases in diesel and petrol prices have significantly raised production and distribution expenses, while weakened consumer purchasing power has led to declining sales volumes.
It warned that introducing additional taxes under such conditions would further erode profitability and threaten the survival of many operators, especially small and medium-scale producers.
The group also highlighted the broader implications for employment and value chains, noting that the food and beverage sector is one of the largest employers in Nigeria’s manufacturing industry. It cautioned that increased taxation could lead to production cutbacks, business closures, job losses, and disruptions across agriculture, logistics, and retail sectors linked to beverage production.
On public health concerns, the CPPE acknowledged the rising cases of non-communicable diseases such as diabetes but argued that taxing sugar-sweetened beverages is not an effective standalone solution.
It emphasized that lifestyle factors such as diet and physical activity play a more significant role in health outcomes, advocating instead for public education, preventive healthcare, and collaborative approaches with industry stakeholders.
The organisation further warned that introducing new sector-specific taxes would create policy inconsistency, undermine investor confidence, and send negative signals about Nigeria’s commitment to a business-friendly environment.
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The CPPE urged the Federal Government to reject the proposed tax and called on the National Assembly to halt any legislative moves in that direction. It also advised public health authorities to focus on awareness campaigns and preventive strategies rather than fiscal measures.
“The priority at this stage of economic recovery should be to support businesses, protect jobs, and strengthen growth not impose additional tax burdens on an already strained sector,” the statement added.
