CPPE kicks against Senate’s passage of SSB Tax Bill, says threat to manufacturing, jobs and value chains

Centre for the Promotion of Private Enterprises, CPPE, Sunday, kicked against the passage of the Sugar-Sweetened Beverage Tax Bill by the Senate.

The Executive Director, CPPE, Dr Muda Yusuf, in a statement issued by the CPPE, said the action sabotages the nation’s manufacturing sector despite the objections from private sector stakeholders, led by the Manufacturers Association of Nigeria, MAN. 

Yusuf Ali described the passage of the Bill as ill-timed, insensitive to prevailing economic realities, saying, “The Centre for the Promotion of Private Enterprise [CPPE] is shocked and deeply concerned that the Senate has proceeded with the passage of the Sugar-Sweetened Beverage Tax Bill despite overwhelming objections from private sector stakeholders, led by the Manufacturers Association of Nigeria.

“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.

“The bill is 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 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.”

He also asserted that the bill is threat to manufacturing, jobs and value chains, which according to him,

“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.”

He further argued that, “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.”

He warned that, “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.”

Meanwhile, the CPPE boss pointed out policy inconsistency and investor concerns with the passage of the Bill by the Senate.

He said, “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.”

However, he maintained that there is limited public health benefits, as “CPPE recognises the importance of addressing the growing incidence of diabetes and other non-communicable diseases in the country.

However, available evidence suggests that sugar taxes, on their own, deliver limited public health outcomes.”

According to him, “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.”

He also pointed out that, “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.”

He recommended that a better path to better health lies with legislations that would address the root causes of lifestyle-related diseases.

“If the objective is to improve public health outcomes, lawmakers should prioritise legislations that directly address the root causes of lifestyle-related diseases.

These include nutrition education, public health awareness campaigns, promotion of exercise and physical activity, encouragement of healthier food choices, improved preventive healthcare systems, and urban planning that supports active living through walking and cycling infrastructure.

“Such interventions are more sustainable, more inclusive and less damaging to economic activity than punitive taxation targeted at a major manufacturing subsector. 

“Public health goals should not be pursued through policies that inadvertently weaken production, investment and job creation”, he said.

CPPE’s position, he said is for the House of Representatives to reject the Bill, “CPPE therefore strongly urges the House of Representatives to decline concurrence to the bill.

The proposed legislation is fundamentally anti-growth. It 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.

“The economy meeds relief, not more burdens. At a time when businesses and households are struggling with unprecedented cost pressures, the economy needs relief, not additional taxation; support for production, not policies that weaken enterprise; and reforms that create jobs, not measures that put them at risk. 

“Public health objectives and economic growth are not mutually exclusive. Nigeria can pursue both through policies that promote healthier lifestyles while protecting investment, jobs and industrial development. The Sugar-Sweetened Beverage Tax Bill fails this test and should therefore be rejected in its entirety.”