Manufacturers say the levy will hurt jobs; health stakeholders insist it is vital for disease prevention funding….
Manufacturers under the umbrella of the Manufacturers Association of Nigeria (MAN) have rejected a proposal to increase excise duty on carbonated sugar-sweetened beverages (SSBs) through an amendment to existing legislation.
The debate played out last week at a public hearing convened by the Senate Committees on Finance and Customs, where stakeholders offered sharply contrasting views on the proposed amendment to the Customs and Excise Tariff (Consolidation) Act.
The amendment seeks to raise the current SSB excise tax from ₦10 per litre to at least 20 per cent of a product’s retail price, in line with World Health Organisation (WHO) recommendations. It also proposes allocating part of the revenue to health promotion and disease-prevention initiatives.
Supporters of the bill argue that a higher tax rate would help reduce SSB consumption among Nigerians.
But manufacturers are urging lawmakers to proceed carefully, warning that such an increase could trigger significant job losses across the production value chain.
Presenting MAN’s position, Adeyemi Folorunsho, a director at the association, dismissed claims linking sugar-sweetened beverage consumption to high rates of diabetes, obesity, and similar health conditions in Nigeria.
“Contrary to this erroneous belief, Nigeria has the lowest rate of sugar consumption globally, which stands at 8.3 million kilogrammes compared to the supposed 22.1 million kilogrammes,” Folorunsho said.
He appealed to the Senate committees and other stakeholders to consider a “win-win approach” in reviewing the bill.
However, the Federal Ministry of Health, represented by the Minister, Ali Pate, threw its weight behind the amendment. Pate described the proposal as a progressive, evidence-driven step toward improving public health financing.
“We commend the Senate for proposing a bill that seeks to increase the excise tax on sugar-sweetened beverages and earmark part of the revenue for health promotion,” he said.
“This measure demonstrates strong political will, aligns fiscal policy with public health goals, and provides sustainable financing for prevention programmes, critical steps toward achieving universal health coverage.”
Public health and advocacy groups, including the Nigeria Cancer Society and the Diabetes Association of Nigeria, also supported the proposed tax increase.
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