SSB tax threatens 33% manufacturing output, 1.5m jobs — MAN

•Promote healthy consumption without harming businesses — ACCI

By Yinka Kolawole & Progress Godfrey

Opposition to the proposed increase in excise duties on sugar-sweetened beverages (SSBs) intensified yesterday as the Manufacturers Association of Nigeria (MAN) and the Abuja Chamber of Commerce and Industry (ACCI) warned of severe economic consequences.

MAN cautioned that the proposed levy could threaten a sector responsible for about 33 per cent of Nigeria’s manufacturing output and over 1.5 million direct and indirect jobs, while ACCI urged the Federal Government to suspend the bill, arguing that healthy consumption can be promoted without harming businesses and consumers.

The proposed Customs and Excise Tariff etc. (Consolidation) Act Amendment (CETA) Bill 2025 seeks to replace the current excise duty of N10 per litre on SSBs with a percentage levy based on retail prices.

In a statement, MAN Director-General, Segun Ajayi-Kadir, speaking on behalf of operators in the non-alcoholic drinks sector, called for a balanced, evidence-based and coordinated approach to excise taxation.

He said the measure, if implemented, could undermine industrial growth, job creation, investor confidence and macroeconomic stability.

According to him, the non-alcoholic drinks industry supports extensive value chains across production, logistics, agriculture, retail and micro, small and medium enterprises (MSMEs).

“The sector currently accounts for approximately 33 per cent of manufacturing output and sustains over 1.5 million direct and indirect jobs. Any fiscal policy that significantly increases the tax burden on the industry will have far-reaching consequences across the economy,” he said.

Ajayi-Kadir noted that manufacturers already remit between 40 and 45 per cent of gross revenues in taxes, placing them close to the upper limit of sustainable taxation.

While acknowledging government efforts to address non-communicable diseases (NCDs), he argued that policy interventions should reflect Nigeria’s consumption realities and be guided by empirical evidence.

He stated that Nigeria’s annual per capita sugar consumption of about 7.1 kilogrammes remains within levels recommended by the World Health Organisation (WHO), adding that beverages account for only a small share of overall sugar intake.

Also speaking, ACCI President, Chief Emeka Obegolu, said Nigeria should pursue policies that improve public health while preserving jobs, investment and the competitiveness of the manufacturing sector. He stressed that healthier consumption patterns can be encouraged without imposing unintended consequences on businesses and consumers.

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