CPPE calls on House of Reps to reject Sugar-sweetened Beverage Tax Bill

THE Centre for the Promotion of Private Enterprise (CPPE) has expressed deep concern over the Senate’s passage of the Sugar-Sweetened Beverage Tax Bill despite strong opposition from private sector stakeholders, particularly the Manufacturers Association of Nigeria (MAN).

The organisation noted that the proposed legislation comes at a period when the government is expected to prioritise policies that reduce the cost of doing business and stimulate industrial recovery.

In a statement signed by CPPE’s Chief Executive Officer, Dr Muda Yusuf, the organisation said the bill seeks to impose an additional tax burden on manufacturers of non-alcoholic beverages at a time when businesses are already under severe strain. It noted that manufacturers continue to grapple with rising energy costs, elevated interest rates, foreign exchange challenges, logistics constraints, multiple taxes and weak consumer purchasing power, stressing that “introducing another excise tax would further weaken the competitiveness of the manufacturing sector and discourage investment.”

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Threat to industry and employment

CPPE stressed that the food and beverage sector remains a major pillar of Nigeria’s industrial economy, contributing significantly to manufacturing output and employment generation. The industry also supports several connected sectors, including agriculture, packaging, transportation, hospitality, retail and distribution.

The private sector group said the non-alcoholic beverage subsector, in particular, plays an important role within this ecosystem. CPPE argued that imposing additional taxes on the sector would increase production costs, push up prices for consumers, reduce demand, lower capacity utilisation and ultimately threaten jobs across the value chain. Rather than strengthening industrial growth, the proposal could become a direct burden on production, employment and investment.

Concerns over policy direction

The organisation further observed that the bill contradicts the objectives of the ongoing fiscal and tax reforms aimed at improving Nigeria’s investment climate, noting that the 2026 fiscal framework already contains an excise duty of N10 per litre on non-alcoholic beverages.

It warned that introducing another layer of taxation through fresh legislation would create policy inconsistency and increase regulatory uncertainty. Such measures, CPPE said, could negatively affect investor confidence because investors require a predictable and stable policy environment before committing capital.

Questionable Public Health Impact

While acknowledging the importance of tackling diabetes and other non-communicable diseases, CPPE maintained that sugar taxes alone have limited effectiveness in achieving public health goals.

The organisation pointed out that major contributors to diabetes and related illnesses in Nigeria include poor nutrition, excessive consumption of carbohydrate-heavy foods, physical inactivity, sedentary lifestyles, low health awareness and genetic factors. It argued that taxation does not address these root causes but instead raises production costs, increases consumer prices and places more pressure on businesses and employment.

Alternative measures for public health

CPPE advised lawmakers to focus on policies that directly promote healthier living if the goal is to improve public health outcomes. Such measures, it said, should include nutrition education, public awareness campaigns, encouragement of exercise and physical activity, preventive healthcare initiatives, and improved urban planning that supports walking and cycling infrastructure.

The group stated that these interventions would deliver more sustainable and inclusive health benefits without damaging industrial activity. It warned against pursuing public health objectives through policies capable of weakening manufacturing performance, investment and job creation.

Appeal to House of Representatives

CPPE therefore urged the House of Representatives to reject the bill when it comes up for concurrence. According to the organisation, the proposed legislation is anti-growth because it penalises production, discourages investment, threatens jobs and adds further costs to consumers already facing economic hardship.

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The group also appealed to lawmakers to sustain the House’s tradition of supporting productive enterprises and protecting citizens’ welfare by refusing the legislation in the interest of manufacturing sustainability, policy coherence, employment preservation and investor confidence.

Need for economic relief

CPPE emphasised that businesses and households are currently facing unprecedented economic pressure and therefore require relief rather than additional taxation. It stated that the economy needs policies that support enterprise, strengthen production and create jobs instead of measures that increase the burden on businesses.

The organisation added that economic growth and public health objectives can be pursued simultaneously through policies that encourage healthier lifestyles while also protecting investment and industrial development. In its view, the Sugar-Sweetened Beverage Tax Bill fails to strike that balance and should be rejected entirely, CPPE noted.