Manufacturers Raise Concerns as Senate Considers Higher Sugar Beverage Excise Duty

Manufacturers under the Manufacturers Association of Nigeria (MAN) have strongly opposed a new proposal before the Senate seeking to raise excise duties on carbonated sugar-sweetened beverages (SSBs) through an amendment to the existing law.

The issue came to the forefront during a public hearing jointly held by the Senate Committees on Finance and Customs, where stakeholders debated the planned amendment to the Customs and Excise Tariff (Consolidation) Act.

The bill proposes increasing the current N10-per-litre tax on SSBs to at least 20% of the product’s retail price, following recommendations from the World Health Organisation (WHO). It also suggests allocating part of the revenue from the increased tariff to fund health promotion and disease-prevention initiatives.

Supporters of the amendment argue that the measure will help curb excessive SSB consumption in Nigeria.

However, manufacturers cautioned against the move, warning that a steep hike in taxes could lead to significant job losses in the sector. They urged lawmakers to apply restraint.

Presenting MAN’s position, the association’s director, Mr. Adeyemi Folorunsho, disputed claims linking SSB consumption to rising cases of diabetes and obesity in Nigeria.
He stated: “Contrary to this erroneous belief, Nigeria has the lowest rate of sugar consumption in the world, which is 8.3 million kilogrammes, as against the 22.1 million kilogrammes that is supposed to be.”

Folorunsho urged the Senate committees to adopt a balanced, “win-win” approach while considering the amendment.

Meanwhile, the Federal Ministry of Health, represented by the Minister, Prof. Ali Pate, threw its full support behind the bill, describing it as a forward-thinking step for public health financing.

Pate said:
“We commend the Senate for proposing a bill that seeks to increase the excise tax on sugar-sweetened beverages (SSBs) and earmark part of the revenue for health promotion.
This measure demonstrates strong political will, aligns fiscal policy with public health goals, and provides sustainable financing for prevention programmes – critical steps toward achieving universal health coverage.”

Groups including the Nigeria Cancer Society and the Diabetes Association of Nigeria also backed the proposed changes.

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