The Centre for the Promotion of Private Enterprise (CPPE) has rejected calls for new taxation on Sugar-Sweetened Beverages (SSBs), describing the idea as ill-conceived and poorly timed.
The Founder of CPPE, Dr Muda Yusuf, stated the position on Tuesday in Lagos, responding to advocacy from Corporate Accountability and Public Participation Africa.
Yusuf said the proposal contradicts the Federal Government’s tax reform agenda, which aims to reduce business burdens, improve efficiency, and encourage investment.
“At a time when the Nigerian economy is still navigating a fragile recovery, imposing new taxes on the manufacturing sector is not good.
“Particularly, an energy-intensive segment such as the sugar-sweetened beverage industry would be counterproductive to growth, employment and investment,” he added.
He highlighted that the operating environment for manufacturers, especially in the food and beverage sector, remains challenging due to macroeconomic pressures and high energy costs.
According to Yusuf, the SSB industry relies heavily on energy for processes such as water treatment, heating, pasteurisation, carbonation and packaging.
Rising energy and distribution costs, he said, have worsened the operating climate, weakening the case for additional taxation.
Beverage prices and other consumer goods have increased by over 50 per cent in the past two years, while sales volumes have declined because of weak consumer purchasing power.
He described the food and beverage sector as a critical component of Nigeria’s industrial ecosystem and one of the largest employers in manufacturing.
Yusuf noted that the sector supports a broad value chain spanning agriculture, manufacturing, logistics, retail and hospitality.
He warned that additional taxation could trigger production cuts, closures of small and medium-scale firms, job losses, and disruptions across supply chains.
“At a time of high unemployment and underemployment, such policy measures could worsen socio-economic conditions,” he said.
While acknowledging rising non-communicable diseases such as diabetes, Yusuf argued that SSB taxation is not a comprehensive solution.
“Public health outcomes are influenced by broader lifestyle factors, including diet and physical activity. Global evidence on sugar taxes shows mixed results,” he added.
He advocated for greater public health education, promotion of healthy lifestyles, improved access to preventive healthcare, and collaboration with industry stakeholders.
Yusuf also cautioned that new sector-specific taxes could undermine policy consistency and investor confidence.
“Such measures would contradict ongoing tax reforms, create uncertainty, and send negative signals to investors,” he said.
He urged the Federal Government and National Assembly to reject the proposal and prioritise policies that support businesses, protect jobs, and strengthen economic recovery.
“At this critical stage of recovery, the focus should be on easing pressures on businesses rather than introducing additional fiscal burdens,” Yusuf concluded.
