OPSN warns Customs and Excise amendment could hurt investment, raise production costs, and weaken already strained manufacturing sector…..
The Organised Private Sector of Nigeria (OPSN) has called on President Bola Ahmed Tinubu to intervene and halt the proposed Customs, Excise and Tariff Amendment (CETA) Bill, which is currently before the National Assembly and seeks to introduce a per-litre levy on non-alcoholic beverages based on retail price.
The umbrella body, which comprises the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the Nigerian Association of Small Scale Industrialists (NASSI), and the Nigerian Association of Small and Medium Enterprises (NASME), said the proposed tax could have far-reaching consequences for industry stability and economic growth.
In a statement, the group urged the Federal Government to engage the leadership of the National Assembly to suspend further consideration of the bill, arguing that doing so would allow ongoing executive-led fiscal reforms to remain coherent and properly aligned.
It said such a pause would create room for broader stakeholder engagement and ensure that any future policy on excise duties is guided by evidence, predictability, and balance between revenue generation, public health goals, and economic sustainability.
While expressing support for well-structured fiscal reforms and public health interventions, OPSN cautioned that the current proposal raises “significant social, economic, administrative, and legal concerns” that could undermine broader reform efforts.
The group argued that the levy, in its present form, would amount to a regressive tax, potentially reducing consumer purchasing power without providing viable alternatives or adequate public health support systems.
Industry warns of cost pressures and investment slowdown
OPSN further warned that Nigeria’s manufacturing sector is already under severe strain from multiple macroeconomic pressures, including foreign exchange volatility, high energy costs, and rising expenses for imported raw materials, packaging inputs, and machinery.
According to the group, introducing an additional excise burden at this time could further escalate production costs, reduce capacity utilisation, and force companies to delay or cancel planned investments.
It also raised concerns over potential job losses across the value chain, particularly among small distributors, retailers, and informal traders who rely on high-volume, low-margin operations.
“An additional excise burden would further increase production costs, reduce capacity utilisation, delay or cancel planned investments, and threaten the livelihoods of thousands of small distributors, retailers, and informal traders,” the group said.
Call for policy alignment and stakeholder consultation
The private sector coalition stressed the need for stronger policy coordination between the executive and legislature, noting that fragmented fiscal measures could weaken investor confidence and undermine economic planning.
It maintained that a more structured and evidence-based consultation process would ensure that future tax reforms are both economically sustainable and aligned with national development objectives.
OPSN reiterated its readiness to support fiscal reforms that are carefully designed and inclusive, but insisted that such policies must not worsen existing economic pressures on businesses and consumers.
