Nigeria excise duty hike on beverages opposed by CPPE

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. The CPPE’s chief executive officer warned that the move would have severe consequences for an economy still recovering from previous challenges. The proposal, advanced by the Senate Committee on Finance, seeks to amend the Customs and Excise Act, but the CPPE argues it would raise retail prices, trigger massive job cuts and place additional pressure on small businesses.

In its statement, the economic think‑tank contended that excise‑rate setting should remain an administrative function rather than being codified in the Customs and Excise Act. This approach would preserve flexibility and allow the government to respond to prevailing macro‑economic conditions. Instead of relying on taxation, the CPPE recommends that the government prioritize broader public‑health strategies, such as nutrition education and awareness campaigns, which are more effective and less socially disruptive.

The centre also called for stronger government‑industry collaboration, urging manufacturers to partner in promoting health‑conscious consumer choices, including the production of low‑sugar and zero‑sugar variants. It appealed to the Senate Committee on Finance to reconsider the proposal, taking into account its potential economic, social and institutional consequences. Additionally, the CPPE recommends that the Federal Ministry of Health work jointly with manufacturers, civil society and nutrition experts on non‑tax health interventions, committing to responsible advertising, voluntary sugar‑reduction programmes and consumer‑awareness campaigns.

Nigeria’s manufacturing sector, a vital engine of employment and growth, needs policies that support stability, competitiveness and resilience. The proposed excise‑duty increase on non‑alcoholic beverages threatens to undermine these objectives, jeopardising 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 amendment, advocating for a collaborative, evidence‑based and economically sensitive approach.