The Centre for the Promotion of Private Enterprise (CPPE) has called on the Senate Committee on Finance to retract its proposal to increase excise duty on non-alcoholic beverages, warning the measure could harm Nigeria’s fragile economy. The statement was issued on Monday by CPPE CEO, Dr. Muda Yusuf.
CPPE argued that adding tax burdens on soft drink manufacturers is ill-timed and risks undermining economic recovery, weakening the manufacturing sector, and straining consumers. “The current economic realities render the proposal counterproductive and potentially harmful to national economic recovery and the welfare of the people,” the group said.
The Senate recently proposed amending the Customs and Excise Act to restructure duties on sugar-sweetened beverages (SSBs), aiming to fund health initiatives and infrastructure. CPPE countered that fiscal measures must align with prevailing macroeconomic conditions and support industrial stability.
The think tank highlighted the beverage industry’s role in employment, warning that higher production costs could lead to reduced profitability, factory closures, and layoffs. “The proposed increase in excise duty on non-alcoholic beverages threatens livelihoods, welfare, investment, and long-term industrial development,” CPPE stated.
CPPE also noted that public health concerns should not justify punitive taxation, advocating instead for education, consumer awareness, and proper regulation to address health issues without stifling business.
The bill, titled “A Bill to Amend the Customs, Excise Tariffs, Etc. (Consolidation) Act…to provide for the earmarking of Excise Duty on Non-Alcoholic, Carbonated or Sweetened Beverages for initiatives and infrastructure that improve the health of Nigerians, 2025 (SB. 713),” was sponsored by Senator Ipalibo Banigo (PDP, Rivers West) and passed its second reading last week.
