SSB tax could cut manufacturing output by 33% and eliminate 1.5 million jobs — MAN

•Promote healthy consumption without harming businesses — ACCI

By Yinka Kolawole & Progress Godfrey

Opposition to the proposed increase in excise duties on sugar‑sweetened beverages (SSBs) grew stronger yesterday after the Manufacturers Association of Nigeria (MAN) and the Abuja Chamber of Commerce and Industry (ACCI) issued warnings about the potential economic fallout.

MAN cautioned that the new levy could endanger a sector that contributes roughly 33 percent of Nigeria’s manufacturing output and supports more than 1.5 million direct and indirect jobs. ACCI called on the Federal Government to suspend the bill, arguing that healthier consumption can be encouraged without harming businesses or consumers.

The proposed Customs and Excise Tariff etc. (Consolidation) Act Amendment (CETA) Bill 2025 would replace the current excise duty of N10 per litre on SSBs with a percentage levy based on retail prices.

In a statement, MAN Director‑General Segun Ajayi‑Kadir, speaking for operators in the non‑alcoholic drinks sector, urged a balanced, evidence‑based and coordinated approach to excise taxation. He warned that the measure, if enacted, could undermine industrial growth, job creation, investor confidence and macroeconomic stability.

Ajayi‑Kadir noted that the non‑alcoholic drinks industry supports extensive value chains across production, logistics, agriculture, retail and micro, small and medium enterprises (MSMEs). “The sector currently accounts for approximately 33 percent of manufacturing output and sustains over 1.5 million direct and indirect jobs. Any fiscal policy that significantly increases the tax burden on the industry will have far‑reaching consequences across the economy,” he said.

He added that manufacturers already remit between 40 and 45 percent of gross revenues in taxes, placing them close to the upper limit of sustainable taxation.

While acknowledging the government’s efforts to tackle non‑communicable diseases (NCDs), Ajayi‑Kadir argued that policy interventions should reflect Nigeria’s consumption realities and be guided by empirical evidence. He pointed out that Nigeria’s annual per‑capita sugar consumption of about 7.1 kilograms remains within levels recommended by the World Health Organization (WHO), and that beverages account for only a small share of overall sugar intake.

ACCI President Chief Emeka Obegolu also spoke, stating that Nigeria should pursue policies that improve public health while preserving jobs, investment and the competitiveness of the manufacturing sector. He emphasized that healthier consumption patterns can be encouraged without imposing unintended consequences on businesses and consumers.

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