The Centre for the Promotion of Private Enterprise (CPPE) has raised serious concerns over proposals to introduce additional taxes on sugar-sweetened non-alcoholic beverages in Nigeria. CPPE CEO Dr. Muda Yusuf cautioned that such a move could harm the country’s fragile economic recovery and place unnecessary strain on the manufacturing sector, which is already facing multiple challenges.
Dr. Yusuf described the proposed sugar-specific tax as economically risky and poorly supported by evidence, especially in Nigeria’s current macroeconomic context. While acknowledging public health issues like diabetes and cardiovascular diseases, he stressed that a sugar tax alone would not effectively address these challenges and may inadvertently hurt economic growth.
Highlighting the importance of the food and beverage sector, Dr. Yusuf noted that the non-alcoholic beverages segment contributes nearly 40% of Nigeria’s total manufacturing output, according to the National Bureau of Statistics. The industry supports millions of jobs across farming, logistics, retail, and hospitality, making it a vital engine for industrial growth and value creation.
The CPPE also emphasized that non-alcoholic beverage producers already face high taxes and operational costs, including company income tax, value-added tax, excise duties, and local levies. Combined with rising energy, logistics, and interest expenses, these pressures have driven up production costs and retail prices, which have surged roughly 50% over the past two years even without a new sugar tax.
Instead of taxation, Dr. Yusuf urged policymakers to focus on sustainable public health solutions. He recommended lifestyle and nutrition education, community health programs, promotion of physical activity, healthy food subsidies, and urban planning that encourages active transportation. According to him, tackling the root causes of non-communicable diseases—such as poor diet, sedentary lifestyles, and genetics—would deliver better long-term results than additional fiscal burdens on manufacturers.
source: leadership