The Centre for the Promotion of Private Enterprise has called on the Senate Committee on Finance to abandon its plan to amend the Customs and Excise Act to raise excise duties on non-alcoholic beverages, describing the move as poorly timed and potentially damaging to Nigeria’s fragile economy.
In a statement on Monday, CEO of CPPE, Dr. Muda Yusuf, said that placing extra tax burdens on soft drink producers is out of step with the country’s current economic conditions.
The group warned that the proposed excise increase could hinder economic recovery, weaken the manufacturing sector, and add further pressure on already strained consumers.
“The current economic realities render the proposal counterproductive and potentially harmful to national economic recovery and the welfare of the people,” CPPE stated
The Senate recently proposed amending the Customs and Excise Act to raise excise duties on non-alcoholic beverages.
According to the statement, CPPE emphasized that such fiscal measures should be carefully aligned with the broader macroeconomic context.
“Nigeria is currently navigating a fragile economic recovery pathway. The manufacturing sector, a vital engine of employment and growth, needs policies that support stability, competitiveness, and resilience,” it stated.
CPPE noted that the beverage industry, which supports thousands of direct jobs and many more indirectly, could suffer serious setbacks if the excise increase goes ahead.
The group warned that higher production costs, lower profitability, potential factory closures, and job losses are likely consequences.
“The proposed increase in excise duty on non-alcoholic beverages threatens to undermine these objectives, jeopardizing livelihoods, welfare, investment, and long-term industrial development,” the statement added.
The organization stressed that public health issues should not be addressed through punitive taxation, highlighting that effective health interventions rely on education, consumer awareness, and proper regulation—not taxes that hinder business growth.
