The Centre for the Promotion of Private Enterprises (CPPE) has called on Nigeria’s government to reject a proposed additional tax on sugar-sweetened beverages (SSBs), arguing it would harm the manufacturing sector during a period of economic fragility.
In a statement on Tuesday, CPPE executive director Dr. Muda Yusuf described the proposal as “ill-conceived and poorly timed.” The call follows a lobbying effort by Corporate Accountability and Public Participation Africa (CAPPA), which advocates for the SSB tax on public health grounds.
However, CPPE contends that the tax is misaligned with current economic realities. The think-tank notes that Nigeria’s economy is navigating a fragile recovery and that the manufacturing sector is already under severe pressure from high energy costs and other operational challenges. An extra tax burden, it states, would be counterproductive.
“The proposal for additional taxation on sugar-sweetened beverages is misaligned with Nigeria’s current economic realities, inconsistent with ongoing tax reforms, and particularly unjustifiable given the extraordinary energy cost pressures confronting the industry,” the statement read.
CPPE urged the National Assembly to discontinue any legislative consideration of the tax. Instead, it recommended that public health authorities focus on education, prevention, and lifestyle interventions to address health concerns related to sugar consumption.
The advisory group emphasized that policy priorities should center on supporting businesses, protecting jobs, and strengthening economic growth at this stage. “At this critical stage of Nigeria’s economic recovery, the policy imperative should be to support businesses, protect jobs, and strengthen growth—not impose additional tax burdens on an already strained sector,” CPPE stated.
The debate highlights the tension between public health objectives and economic policy in Nigeria. While health advocates push for fiscal measures to reduce sugar consumption, business groups warn of potential adverse effects on industrial activity and employment in the beverage manufacturing industry. The government’s decision will likely weigh these competing considerations against broader fiscal and industrial strategy.
