Nigeria business groups urge rejection of sugar drink tax

Two of Nigeria's leading business organizations have strongly criticized a proposed tax on sugar-sweetened beverages, warning it could severely harm the manufacturing sector and the broader economy. The Lagos Chamber of Commerce and Industry and the Centre for the Promotion of Private Enterprise issued separate statements this week urging a redesign or outright rejection of the legislation, which was passed by the Senate last week.

The bill, formally known as the Customs, Excise Tariff, etc. Consolidation Act Amendment Bill 2025, aims to reform excise duties on non-alcoholic, sugar-sweetened drinks. Its stated objectives include strengthening public health financing and addressing the growing burden of non-communicable diseases like diabetes in Nigeria.

Business leaders, however, argue the tax is ill-timed and counterproductive. They contend manufacturers are already struggling with high energy costs, volatile exchange rates, elevated interest rates, logistics bottlenecks, multiple existing taxes, and weak consumer purchasing power. Imposing an additional levy, they say, would force companies to raise prices, further fueling inflation and reducing demand for local products.