Manufacturers Reject Proposed Increase in Sugar-Sweetened Beverage Tax

Manufacturers Reject Proposed Increase in Sugar-Sweetened Beverage Tax

Manufacturers under the Manufacturers Association of Nigeria (MAN) have strongly rejected a proposal to increase excise duty on carbonated sugar-sweetened beverages (SSB) through an amendment to the Customs and Excise Tariff (Consolidation) Act.

The debate unfolded at a public hearing organised by the Senate Committees on Finance and Customs, where stakeholders presented sharply contrasting views on the planned fiscal change.

The amendment bill seeks to raise the current N10 per litre SSB tax to 20% of retail price, aligning with World Health Organisation (WHO) recommendations. It also proposes that part of the revenue generated from the tariff be channeled into health promotion and disease prevention programmes.

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Supporters of the bill argued that the measure would significantly reduce SSB consumption among Nigerians. However, manufacturers warned of potential job losses and disruptions to the manufacturing sector.

Presenting MAN’s position, Adeyemi Folorunsho, a director in the association, dismissed claims linking rising cases of diabetes, obesity, and related diseases primarily to SSB consumption. He argued that Nigeria records one of the lowest sugar consumption levels globally, noting: “Nigeria has the lowest rate of sugar consumption in the world at 8.3 million kilogrammes, compared to the expected 22.1 million kilogrammes.”

Folorunsho urged lawmakers to adopt a balanced, win-win approach to the proposed amendment.

In contrast, the Federal Ministry of Health, represented by Minister Prof. Ali Pate, endorsed the bill, describing it as an evidence-driven strategy to strengthen public health financing. He said the Senate’s move reflects strong political will and supports national efforts toward universal health coverage.

The Nigeria Cancer Society, Diabetes Association of Nigeria, and other health-focused organisations also declared support for the proposed excise increase.

Manufacturers Reject Proposed Increase in Sugar-Sweetened Beverage Tax