The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over renewed calls for a special tax on sugar-sweetened non-alcoholic drinks in Nigeria, warning that such a move could harm the manufacturing sector and worsen economic pressures.
CPPE said in a statement issued by its Chief Executive Officer, Muda Yusuf, on Monday, January 21.
It acknowledged that there are growing public health challenges linked to diabetes and heart-related diseases but argued that a sugar-specific tax is not the right solution for Nigeria.
“Nigeria’s economy remains in a delicate recovery phase. Introducing additional sugar-specific taxes at this time risks reversing recent industrial gains, weakening employment outcomes, and undermining the objectives of ongoing manufacturing-friendly fiscal reforms,” CPPE stated.
According to the group, the proposal does not reflect Nigeria’s current economic and social realities, including high inflation, weak consumer purchasing power, and widespread poverty.
The organisation noted that global experience shows sugar taxes do not work well as a standalone solution to non-communicable diseases, especially in developing economies struggling with fragile industrial growth.
“Public health objectives and economic growth are not mutually exclusive. What Nigeria requires is balanced, holistic, and development-conscious policymaking, rather than additional fiscal pressure on one of the most important segments of the manufacturing sector,” CPPE said.
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It stressed that the food and beverage industry is the backbone of Nigeria’s manufacturing sector.
According to CPPE, data from the National Bureau of Statistics (NBS) show that the sector contributes about 40 per cent of total manufacturing output.
It stressed that the non-alcoholic beverages segment plays a key role in job creation, investment, and value addition.
It noted that beyond factories, the industry supports a wide value chain involving farmers, suppliers, transporters, traders, and the hospitality sector, providing livelihoods for millions of Nigerians.
CPPE warned that policies that weaken this sector could lead to job losses, lower household incomes, and reduced investment.
According to the group, beverage manufacturers are already among the most heavily taxed businesses in the country.
It listed the taxes to include 30 per cent company income tax, 7.5 per cent value-added tax, ₦10 per litre excise duty, 4 per cent National Development Levy on assessable profits, 4 per cent FOB levy on imported inputs, 5-15 per cent import duties on intermediate raw materials, and 0.5 per cent ECOWAS levy.
It stressed that prices of many non-alcoholic beverages have already risen by about 50 per cent in the past two years, making them less affordable even without new taxes.
CPPE also argued that sugar taxes offer limited health benefits unless combined with broader lifestyle and behavioural changes.
It said rising diabetes rates in Nigeria are driven more by poor diets, physical inactivity, urban living patterns, and genetic factors than by sugar intake alone.
Instead of new taxes, CPPE urged the government to focus on public education, healthy lifestyle promotion, support for physical activity, better urban planning, and subsidies for healthy foods.
The organisation warned that Nigeria’s economy is still recovering and that introducing new sugar taxes now could reverse recent industrial gains.
It added by calling for balanced policies that protect both public health and economic growth.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
