Lagos, March 25, 2026 – The Centre for the Promotion of Private Enterprise (CPPE) has urged the government to reject the call for additional taxation on sugar-sweetened beverages [SSB] as canvassed by the Corporate Accountability and Public Participation Africa (CAPPA).
The CPPE said this in a statement signed by Dr. Muda Yusuf, its Chief Executive, in Lagos on Tuesday.
It said the proposal was ill-conceived, poorly timed, and inconsistent with the current administration’s tax reform agenda, which is anchored on reducing the burden of taxation on businesses, improving tax efficiency, and stimulating investment.
“At a time when the Nigerian economy is still navigating a fragile recovery, the imposition of new taxes on the manufacturing sector—particularly a highly energy-intensive segment such as the sugar-sweetened beverage industry—would be profoundly counterproductive and disruptive to growth, employment, and investment,” it said.
The CPPE said the food and beverage sector is a critical component of Nigeria’s industrial ecosystem and the largest employers in the manufacturing space.
It said the sector had been supporting an extensive value chain spanning agriculture and raw material supply (including sugar, fruits, and packaging inputs), the manufacturing and processing, logistics and distribution and retail and hospitality.
“The sugar-sweetened beverage segment plays a particularly strategic role because of its scale, distribution reach, and integration with multiple upstream and downstream sectors.
“Given the energy-intensive nature of the industry, additional taxation at this time would have amplified negative consequences like accelerating downscaling of production due to unsustainable operating costs and closure of vulnerable small and medium beverage manufacturers,” it said.
The CPPE also said higher taxes would also lead to job losses across production, distribution, and retail segments, disruptions to agricultural supply chains linked to beverage production and increased informalization of the sector as firms struggle to survive
“At a time of already high unemployment and underemployment, such policy actions would exacerbate socio-economic vulnerabilities.
“While CPPE acknowledges the rising incidence of non-communicable diseases such as diabetes, it is important to emphasize that taxation of sugar-sweetened beverages is not a silver bullet for addressing these concerns.
“Public health outcomes are primarily influenced by broader lifestyle factors, including dietary habits across multiple food categories, physical inactivity and overall consumption patterns
“Singling out a highly energy-stressed industrial segment for punitive taxation is therefore neither equitable nor effective.
“Global evidence on sugar taxes shows mixed outcomes, with limited long-term impact on health indicators in many jurisdictions, particularly where complementary lifestyle interventions are weak.
“A more sustainable approach should focus on public health education and awareness campaigns, promotion of healthy lifestyles and physical activity, improved access to preventive healthcare services as well as constructive stakeholder collaboration with industry players,” it said.
The CPPE said the proposal for additional taxation on sugar-sweetened beverages is misaligned with Nigeria’s current economic realities, inconsistent with ongoing tax reforms, and particularly unjustifiable given the extraordinary energy cost pressures confronting the industry.
It, therefore, urged the Federal Government to reject the proposal, while the National Assembly discontinue any legislative consideration of such a tax
The CPPE also urged public health authorities to prioritize education, prevention, and lifestyle interventions.
