The Centre for the Promotion of Private Enterprise has urged the House of Representatives to reject the Sugar-Sweetened Beverage Tax Bill recently approved by the Senate, warning that the proposed legislation could further strain Nigeria’s already challenging business environment.
The group stated its position in a statement issued on Sunday, June 7, 2026, and signed by its Chief Executive Officer, Dr. Muda Yusuf, amid ongoing discussions on fiscal reforms and sector-specific taxation.
According to the CPPE, the proposed tax comes at a difficult time for manufacturers grappling with significant macroeconomic challenges and could undermine ongoing efforts to improve the ease of doing business and lower operating costs across the country.
The group further cautioned that the proposed tax would compound the burden of existing levies on the non-alcoholic beverage sector, increasing cost pressures throughout the industry’s value chain.
“Investors thrive on predictability. Frequent additions to the tax burden send the wrong signal to both existing and prospective investors,” the organisation said.
“Any additional tax burden on the industry would inevitably increase production costs, raise consumer prices, weaken demand, reduce capacity utilisation and threaten jobs across the value chain,” CPPE added
According to the CPPE, the Senate’s approval of the bill is at odds with ongoing government initiatives aimed at boosting production, attracting investment, and reducing the cost of doing business in Nigeria.
The organisation noted that manufacturers are already contending with elevated production costs, weak consumer purchasing power, and a complex web of taxes and regulatory charges that continue to weigh on business operations.
The organisation maintained that the food and beverage industry plays a critical role in Nigeria’s economy, contributing significantly to industrial production, job creation, and value-chain development.
It warned that imposing additional taxes on the sector could disrupt business operations and weaken its contribution to economic growth.
While acknowledging concerns over the increasing prevalence of diabetes and other non-communicable diseases, the CPPE questioned the effectiveness of sugar taxation as a public health strategy, arguing that there is limited evidence to suggest that such measures alone can meaningfully address the underlying causes of these health challenges.
The organisation argued that the growing incidence of lifestyle-related illnesses is influenced more by poor dietary choices, sedentary behaviour, and inadequate health education than by the consumption or pricing of sugar-sweetened beverages alone.
CPPE stated that taxation by itself is unlikely to tackle the underlying causes of non-communicable diseases in Nigeria.
Instead, it called for a broader public health approach focused on preventive measures.
The group recommended intensified nutrition education and public awareness campaigns to promote healthier lifestyles.
It also urged the government to strengthen preventive healthcare systems and implement policies that encourage regular physical activity among citizens.
The group warned that imposing additional taxes on the industry could lead to higher prices for consumers while eroding the competitiveness of manufacturers already facing significant operational challenges.
The CPPE also underscored the sector’s strong connections to other parts of the economy, including agriculture, packaging, logistics, retail, and distribution.
It noted that rising production costs within the beverage industry could have far-reaching effects, creating ripple impacts across multiple sectors and value chains.
