The Organised Private Sector of Nigeria has formally advised the National Assembly to withdraw the proposed amendment to the Customs, Excise and Tariff Bill.

The OPS’s position, outlined in a memo presented at a public hearing on Thursday, contends that the bill, in its current form, is misaligned with the Federal Government’s fiscal reform agenda and risks destabilising key non-oil sectors.

The legislation in question has recently advanced, having passed its second reading in the National Assembly.

The OPS is a coalition of Nigeria’s significant business associations, including the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture; the Manufacturers Association of Nigeria; and the Nigeria Employers’ Consultative Association.

It also represents smaller enterprises through members such as the National Association of Small and Medium Enterprises and the National Association of Small Scale Industrialists.

According to the OPS’s analysis, the proposed legislation contains fundamental flaws, creating “mathematical, legal, and administrative contradictions” that would deepen the inconsistencies within Nigeria’s excise framework.

It argued that new levies are frequently introduced without any coordinated assessment of their cumulative impact on production, investment, employment, exports, inflation, and backward integration.

“The current draft of the bill is misaligned with the Federal Government’s fiscal reform direction and contains several legal and administrative gaps,” the group cautioned.

The coalition warned that a steep tax increase, as proposed, would harm the economy without providing proven health benefits.

They added that while the non-alcoholic sector supports public health and revenue, policies must be balanced to avoid negative impacts on jobs, affordability, and industry stability.

The OPS warned that the policy could weaken one of Nigeria’s key non-oil revenue generators.

It would drive up operating costs, reduce production capacity, and force higher prices on consumers, potentially pushing households into financial distress and shrinking the formal economy.

“Nigeria’s non-alcoholic drinks sector is a critical economic stabiliser, supporting 1.5 million jobs, driving backward integration under the NSMP II, and contributing 40–45 per cent of gross revenues as taxes, yet already operating under severe macroeconomic strain and thin margins,” the OPS said.

Despite its concerns, the group expressed a willingness to collaborate with legislators, fiscal authorities, and civil society on a more coherent excise framework.

Senator Ipalibo Harry Banigo, the bill’s sponsor, stated the amendment aims to make Nigeria’s tax system more responsive to public health needs.

The proposal would direct a portion of the existing sugar-sweetened beverage tax to fund primary healthcare and preventive initiatives.

Banigo, a medical doctor and former Deputy Governor of Rivers State, emphasised this was “not a new tax,” but a strategy to “put existing revenues to better use in improving the well-being of Nigerians.”