Manufacturers under the Manufacturers Association of Nigeria have raised strong objections to a new proposal seeking a sharp increase in excise duty on carbonated sugar-sweetened beverages. The plan, which came up during a public hearing held by the Senate Committees on Finance and Customs, aims to amend the Customs and Excise Tariff Act and raise the current tax from ten naira per litre to a rate tied to at least twenty percent of a product’s retail price.
Supporters of the bill say the change follows World Health Organisation guidance and will help reduce the consumption of sugary drinks. A portion of the revenue is expected to be directed to health promotion and disease prevention programmes.
Manufacturers, however, insist the proposal threatens jobs and could worsen the challenges already facing local industries. Speaking for the group, MAN director Adeyemi Folorunsho disputed the claim that sugar-sweetened beverages are a major driver of diabetes and obesity in the country. He argued that Nigeria ranks among the lowest consumers of sugar globally and urged lawmakers to consider a balanced solution that protects both public health and industry stability.
Read also:
- Fighting obesity through SSBs tax
- Extend tax waivers probe to tobacco firms, CAPPA tells Federal Government
- MAN tasks members on payment of appropriate taxes
The Federal Ministry of Health, represented by Minister Ali Pate, supported the amendment, describing it as a practical step toward sustainable health financing. He noted that earmarking part of the revenue for preventive programmes would strengthen the nation’s efforts toward universal health coverage. Health groups including the Nigeria Cancer Society and the Diabetes Association of Nigeria also endorsed the proposal, saying the tax will help lower the long-term burden of non-communicable diseases.
As Senate deliberations continue, the debate highlights the wider struggle to balance economic pressure on manufacturers with growing concerns about public health.
