The Centre for the Promotion of Private Enterprise (CPPE) has urged the House of Representatives to reject the Sugar-Sweetened Beverage Tax Bill, warning that its implementation could deepen cost pressures on manufacturers already facing high energy costs, elevated interest rates, and weak consumer demand.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, described the proposed legislation as “ill-timed,” arguing that it is inconsistent with the government’s commitment to improving the ease of doing business in Nigeria.
According to him, the Centre is “shocked and deeply concerned” that the Senate has proceeded with the passage of the Sugar-Sweetened Beverage Tax Bill despite widespread opposition from private sector stakeholders, including the Manufacturers Association of Nigeria (MAN).
Yusuf warned that the food and beverage industry, which plays a critical role in industrial output and employment generation, could face significant disruption if the bill becomes law. He explained that an additional excise tax would raise production costs, trigger higher consumer prices, and potentially threaten jobs across agriculture, packaging, logistics, and retail value chains.
He further argued that Nigeria’s manufacturing sector is already under severe pressure from macroeconomic challenges, and introducing new consumption taxes could undermine investment confidence and slow economic recovery.
The CPPE maintained that policy measures should prioritise production incentives and cost-reduction strategies rather than additional fiscal burdens on consumers and manufacturers.
