Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, announced that the Federal Government plans to raise N250.09 billion from excise duty in 2023, according to the 2023 fiscal framework document obtained by our correspondent. The document shows that the government targeted N98.53 billion from excise duty in 2021 and N161.7 billion in 2022, representing a 153.82 percent increase over two years and a 54.66 percent rise in a single year.
In November last year, the government reported that it would introduce more sin taxes and reduce tax incentives in 2023 through the proposed 2022 Finance Bill. However, experts and organisations have opposed the expansion of excise taxes. The carbonated soft drinks group of the Manufacturers Association of Nigeria, in December, called the government’s claim to add a 20 percent ad‑valorem excise tax on carbonated soft drinks “misleading.” The group warned that the additional tax would raise the cost of carbonated drinks, creating multiplier effects, and argued that while controlling sugar consumption is essential, raising taxes is not the solution.
The Centre for the Promotion of Private Enterprises (CPPE) also expressed concern that imposing excise duty on all services would negatively affect the business community. CPPE CEO Muda Yusuf noted that the new finance bill’s provisions are overly broad, inexact, and wide‑ranging, making businesses vulnerable. He pointed out that no jurisdiction worldwide subjects all services to excise duty; such duties are typically specific, selective, and aimed at discouraging consumption or production of particular product groups.
Yusuf highlighted the heavy tax burden already faced by companies in the service sector, which pay a 30 percent company tax, a 2.5 percent tertiary education tax, a 1 percent NITDA levy, a 0.25 percent NASENI levy, a 0.005 percent Police Trust Fund levy, and a 10 percent withholding tax on profit distribution—all calculated as percentages of profit. In addition, numerous taxes and levies are imposed by state governments. Financial experts have urged the Federal Government to halt the introduction of further taxes, citing the nation’s weak economy.
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