Post by Brasil Sugar International

CPPE urges Nigerian lawmakers to reject Sugar Tax bill, warns of impact on industry and jobs By ChiniMandi - June 15, 2026 The Centre for the Promotion of Private Enterprise (CPPE) has called on Nigeria’s House of Representatives to reject the proposed Sugar-Sweetened Beverage Tax (SSBT) bill, arguing that additional taxation could worsen business conditions and slow industrial growth at a difficult economic period for the country. In a recent statement, CPPE Chief Executive Officer Dr Muda Yusuf said the proposal, which has already passed the Senate, comes at a time when businesses are facing mounting economic pressures and should be reconsidered, Tribune Online reported. According to Yusuf, the bill does not align with the Federal Government’s stated objective of reducing the cost of doing business and encouraging investment. “The bill is ill-timed, insensitive to prevailing economic realities, and inconsistent with the federal government’s commitment to reducing the tax burden on businesses,” the statement said. CPPE warned that additional taxes on the non-alcoholic beverage industry could lead to higher production costs, increased consumer prices, weaker demand, lower factory utilisation and job losses across the value chain. Yusuf said the economy currently needs stronger industrial activity and investment and argued that introducing additional levies could discourage production and employment growth. He added that the effects would extend beyond beverage manufacturers to include suppliers, distributors and retailers connected to the sector. The organisation noted that the non-alcoholic beverages segment remains an important part of Nigeria’s manufacturing sector and supports employment directly and indirectly while contributing to related industries including packaging, logistics and agriculture. CPPE also pointed to existing economic pressures, including inflation, exchange rate volatility and rising energy costs, which it said have already created challenges for businesses. The organisation questioned the policy direction of the proposal, noting that Nigeria’s 2026 fiscal framework already includes an excise duty of N10 per litre on non-alcoholic beverages. According to CPPE, adding another tax layer could send negative signals to domestic and international investors at a time when President Bola Tinubu’s administration is seeking to improve the business environment. “Imposing additional taxes on the non-alcoholic beverage subsector would increase production costs, raise consumer prices, weaken demand, reduce capacity utilisation and threaten jobs across the value chain,” Yusuf said. He added that the industry should receive support rather than additional tax burdens. Continued... Brasil Sugar International (BSI) Website: https://brasil-sugar.com Email: [email protected] WhatsApp USA: +1 248 939 2646