The Centre for the Promotion of Private Enterprise (CPPE) has urged the Nigerian Senate to abandon its proposal to increase excise duty on non-alcoholic beverages. According to the CPPE’s Chief Executive Officer, the move would have severe consequences for the country’s economy, which is still recovering from previous challenges. The proposal, put forth by the Senate Committee on Finance, aims to amend the Customs and Excise Act, but the CPPE argues that it would lead to higher retail prices, massive job cuts, and increased pressure on small businesses.

The CPPE’s statement comes in response to the Senate Committee’s recent proposal, which the economic think tank believes would be counterproductive and harmful to national economic recovery. The centre argues that excise policy rate-setting should remain an administrative function, rather than being legislated into the Customs and Excise Act, to allow for flexibility and responsiveness to prevailing macroeconomic conditions.

Instead of relying on taxation, the CPPE suggests that the government should prioritize broader public health strategies, such as nutrition education and awareness campaigns, which are more effective and less socially disruptive. The centre also emphasizes the need for stronger government-industry collaboration, with manufacturers willing to partner in promoting health-conscious consumer choices, including the production of low-sugar and zero-sugar variants.

The CPPE has called on the Senate Committee on Finance to reconsider the proposal, taking into account its potential economic, social, and institutional consequences. The centre also recommends that the Federal Ministry of Health work collaboratively with manufacturers, civil society, and nutrition experts on non-tax health interventions, committing to responsible advertising, voluntary sugar reduction programs, and consumer awareness campaigns.

Nigeria’s manufacturing sector, a vital engine of employment and growth, needs policies that support stability, competitiveness, and resilience, the CPPE notes. The proposed increase in excise duty on non-alcoholic beverages threatens to undermine these objectives, jeopardizing livelihoods, welfare, investment, and long-term industrial development. In the interest of economic stability, job protection, and sound public health strategy, the CPPE strongly urges the withdrawal of the proposed amendment, advocating for a collaborative, evidence-based, and economically sensitive approach.