Manufacturers Warn of Job Losses as Senate Considers Higher Tax on Coke, Fanta, other Sugary Drinks
- The Senate is considering a bill to raise excise duty on sugar-sweetened beverages from N10 per litre to at least 20% of the retail price
- MAN warned that the proposed increase could lead to job losses and urged lawmakers to adopt a balanced approach
- The Ministry of Health supported the amendment, saying it aligns with public health goals and provides sustainable financing
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Manufacturers in Nigeria have raised concerns over a proposal to raise excise duty on carbonated sugar-sweetened beverages (SSBs) as lawmakers consider amending the existing excise law.
The manufacturers presented their position on the issue during a public hearing organised by the Senate Committees on Finance and Customs.
Source: Getty Images
The proposed amendment to the Customs and Excise Tariff (Consolidation) Act seeks to move the current N10-per-litre charge on SSBs to a rate equivalent to at least 20% of a product’s retail price, in line with recommendations by the World Health Organisation (WHO).
Part of the revenue is expected to be directed towards health promotion and disease-prevention programmes, according to the bill’s supporters, Vanguard reported.
Advocates of the amendment argue that higher taxes will help reduce SSB consumption among Nigerians.
However, the Manufacturers Association of Nigeria (MAN) has cautioned that the move could have negative consequences for the industry.
Presenting the association’s position, Mr. Adeyemi Folorunsho, a director at MAN, disagreed with claims linking heavy SSB consumption to rising cases of diabetes, obesity, and related conditions.
He argued Nigeria’s sugar consumption level remains among the lowest globally and should not be the main basis for the tax increase.
He, however, urged lawmakers to consider a balanced approach that addresses health concerns without threatening jobs or industrial stability.
Source: Getty Images
On the other hand, the Federal Ministry of Health supported the proposed changes, particularly the proposed use of revenue generated for public health purposes.
Speaking through the Minister of Health, Prof. Ali Pate, the ministry described the bill as a progressive step aligned with evidence-based public health policy.
Prof. Pate noted that earmarking part of the revenue for health promotion would strengthen efforts toward disease prevention and expand sustainable financing for health services.
He said:
“This measure demonstrates strong political will, aligns fiscal policy with public health goals, and provides sustainable financing for prevention programmes – critical steps toward achieving universal health coverage.”
Civil society groups, including the Nigerian Cancer Society and the Diabetes Association of Nigeria, also backed the proposal.
Legit.ng learnt that there is a 3.0% diabetes prevalence among Nigeria's 106 million adult population, according to the International Diabetes Federation (IDF). A 2024 figure by the health organisation revealed that over 2.9 million Nigerian adults have diabetes.
According to the IDF, about 589 million people have diabetes in the world, and the number is expected to increase in the coming years.
Findings from a new study showed that inflation and rising living costs have made diabetes medication out of reach to many Nigerians, a situation that has forced patients into debt and worse health outcomes, Premium Times reported.
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Manufacturers disapprove govt policy, second in a month
This is the second time manufacturers are opposing a government policy in recent times, especially concerning consumer products.
Legit.ng earlier reported Manufacturers condemned the government’s decision to ban sachet alcohol, stating that millions would lose their jobs.
They said the ban will also lead to an influx of fake products in the market, adding that the government should reconsider its policy, the same proposition the manufacturers urged with the new increase in sugar-sweetened beverage excise duty.
Source: Legit.ng
