Lagos: The Centre for the Promotion of Private Enterprise (CPPE) has opposed calls for additional taxation on Sugar-Sweetened Beverages (SSBs), describing the proposal as ill-conceived and poorly timed.
The Founder, CPPE, Dr Muda Yusuf, made the position known in a statement on Tuesday in Lagos, in response to advocacy by the Corporate Accountability and Public Participation Africa.
Yusuf said the proposal contradicts the Federal Government’s tax reform agenda aimed at reducing the burden on businesses, improving efficiency and stimulating investment.
“At a time when the Nigerian economy is still navigating a fragile recovery, imposing new taxes on the manufacturing sector is not good.
“Particularly, an energy-intensive segment such as the sugar-sweetened beverage industry—would be counterproductive to growth, employment and investment,” he said.
He noted that the operating environment for manufacturers, especially in the food and beverage segment, remained challenging due to macroeconomic pressures and high energy costs.
According to him, the SSB industry is heavily energy-dependent, with production processes such as water treatment, heating, pasteurisation, carbonation and packaging requiring significant power.
Yusuf said rising energy and distribution costs have worsened the operating climate, weakening the justification for additional taxation.
He added that beverage prices and other consumer goods have risen by over 50 per cent in the past two years, while sales volumes have declined due to weak consumer purchasing power.
He described the food and beverage sector as a critical component of Nigeria’s industrial ecosystem and one of the largest employers in manufacturing.
Yusuf said the sector supports a broad value chain spanning agriculture, manufacturing, logistics, retail and hospitality.
He warned that additional taxation could trigger production cuts, closure of small and medium-scale firms, job losses and disruptions across supply chains.
“At a time of high unemployment and underemployment, such policy measures could worsen socio-economic conditions,” he said.
While acknowledging rising cases of non-communicable diseases such as diabetes, Yusuf argued that SSB taxation was not a comprehensive solution.
He said public health outcomes are influenced by broader lifestyle factors, including diet and physical activity, noting that global evidence on sugar taxes shows mixed results.
Yusuf advocated increased public health education, promotion of healthy lifestyles, improved access to preventive healthcare and collaboration with industry stakeholders.
He also warned that introducing new sector-specific taxes could undermine policy consistency and investor confidence.
According to him, such measures would contradict ongoing tax reforms, create uncertainty and send negative signals to investors.
Yusuf urged the Federal Government and the National Assembly to reject the proposal and prioritise policies that support businesses, protect jobs and strengthen economic recovery.
“At this critical stage of recovery, the focus should be on easing pressures on businesses rather than introducing additional fiscal burdens,” he said.
