Lagos, June 8, 2026 – The Centre for the Promotion of Private Enterprise [CPPE] has appealed to the House of Representatives to reject the sugar beverage bill currently before it.
The private think tank made the appeal in a statement signed by its Chie Executive, Muda Yusuf on Sunday.
The CPPE said it was shocked and deeply concerned that the Senate had proceeded with the passage of the bill in spite of overwhelming objections from private sector stakeholders, led by the Manufacturers Association of Nigeria.
The CPPE said the consideration of the bill by the national assembly was ill-timed, insensitive to prevailing economic realities, and inconsistent with the federal government’s commitment to reducing the tax burden on businesses.
“At a time when government policy is focused on easing the cost of doing business and revitalising manufacturing, the bill seeks to impose an additional layer of taxation on non-alcoholic beverage manufacturers, thereby worsening cost pressures across the value chain.
“At a time when manufacturers are grappling with elevated energy costs, high interest rates, exchange rate pressures, logistics challenges, weak consumer purchasing power, and multiple taxes and levies, the imposition of an additional excise tax on non-alcoholic beverages would further erode industrial competitiveness and weaken investment prospects,” it said.
The CPPE said the potential threat of the bill to the food and beverage industry is one of the strongest pillars of Nigeria’s industrial economy, accounting for a significant proportion of manufacturing output and jobs.
“Its extensive linkages with agriculture, packaging, logistics, retail trade, hospitality and distribution make it a powerful engine of inclusive economic activity. The non-alcoholic beverages subsector is a major contributor to this ecosystem and should be supported, not burdened with additional taxation.
“Any additional tax burden on the industry would inevitably increase production costs, raise consumer prices, weaken demand, reduce capacity utilisation and threaten jobs across the value chain.
“At a time when the economy needs stronger industrial growth, this Senate proposal risks becoming a tax on production, investment and employment.
The CPPE also said the passage of the bill would amount to policy inconsistency which had raised Investor concerns
“The proposed legislation also runs contrary to the spirit of the ongoing fiscal and tax reforms designed to create a more investment-friendly business environment. The 2026 fiscal policy framework already provides for an excise duty of ₦10 per litre on non-alcoholic beverages.
“Further escalation of the tax burden through additional legislation would create policy inconsistency, heighten regulatory uncertainty and undermine investor confidence. Investors thrive on predictability.
“Frequent additions to the tax burden send the wrong signal to both existing and prospective investors.
The CPPE said while it recognised the importance of addressing the growing incidence of diabetes and other non-communicable diseases in the country, available evidence suggests that sugar taxes, on their own, deliver limited public health outcomes.
“The major drivers of diabetes and related health conditions in Nigeria include poor dietary habits, excessive consumption of carbohydrate-rich foods, physical inactivity, sedentary lifestyles, inadequate health awareness and genetic predisposition.
“Taxation does little to address these underlying factors. What it achieves is an immediate increase in production costs, higher consumer prices and additional pressure on investment and employment.
“If the objective is to improve public health outcomes, lawmakers should prioritise legislations that directly address the root causes of lifestyle-related diseases,” it said.
The CPPE, therefore, urged the House of Representatives to decline concurrence to the bill as the proposed legislation is fundamentally anti-growth and penalises production, discourages investment, threatens jobs and imposes additional costs on already burdened consumers.
“The House of Representatives has historically demonstrated sensitivity to the welfare of citizens and the concerns of productive enterprises.
“We urge members to uphold that tradition by rejecting this legislation in the interest of manufacturing sustainability, employment preservation, investment confidence and policy coherence,” it said.
.
