CPPE Warns Against Additional Tax on Sugar-Sweetened Beverages
- The CPPE has raised concerns about an additional tax on sugar-sweetened beverages
- The centre explained that the new taxes on sugary drinks could hurt manufacturers
- Muda Yusuf, in a message to Legit.ng, said that the beverage sector is already under pressure
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
The Centre for the Promotion of Private Enterprise (CPPE) has warned against plans to impose additional taxes on sugar-sweetened beverages (SSBs).
Director-General of CPPE, Muda Yusuf, in a message to Legit.ng cautions the government that such a move could harm Nigeria’s manufacturing sector and slow economic recovery.
Source: Facebook
CPPE warns against additional tax
CPPE position comes amid calls by Corporate Accountability and Public Participation Africa (CAPPA) for increased taxation on sugary drinks to address public health concerns, Leadership reports.
Yusuf said while the push for higher taxes may be driven by health considerations, the timing is inappropriate given current economic realities.
He noted that Nigeria’s ongoing tax reform agenda is designed to reduce the burden on businesses, improve efficiency, and stimulate investment, adding that introducing new levies on a struggling sector could undermine these objectives.
According to Yusuf, the sugar-sweetened beverage industry is highly energy-intensive, relying heavily on power for water extraction, purification, bottling, and distribution.
With energy and logistics costs already elevated, he warned that additional taxes could threaten the sustainability of businesses.
He said.
“Manufacturers are already grappling with difficult macroeconomic conditions. Adding new taxes at this time could disrupt growth, reduce investment, and lead to job losses."
He indicated that beverage prices have risen by over 50% in the past two years, leading to declining sales volumes and increased pressure on small and medium-scale producers.
Yusuf highlighted the importance of the food and beverage industry to Nigeria’s economy, describing it as a major employer with an extensive value chain that supports agriculture, manufacturing, and distribution networks.
He cautioned that further taxation could trigger negative consequences, including reduced production capacity, business closures, and disruptions across supply chains linked to beverage production.
Source: Getty Images
While acknowledging the rising cases of non-communicable diseases such as diabetes, Yusuf argued that taxation alone is not sufficient to address the problem.
Instead, he called for broader interventions, including public education, prevention programmes, and lifestyle changes.
CPPE urged the federal government to carefully consider the potential impact of the proposed tax, emphasising the need to balance public health objectives with economic stability.
Yusuf added:
“At this critical stage of Nigeria’s economic recovery, the policy priority should be to support businesses, protect jobs, and strengthen growth, not impose additional tax burdens on an already strained sector."
FG releases 50 items exempted from new tax
Legit.ng earlier reported that the federal government has disclosed that from January 1, 2026, Nigerians earning modest incomes, small businesses, and everyday taxpayers will begin to enjoy a wide range of exemptions and reliefs under the new tax reform laws signed by President Bola Tinubu’s administration.
It noted that the reforms aimed to simplify compliance and reduce the tax burden on lower-income groups.
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, outlined 50 key exemptions and deductions covering personal income, pensions, small businesses, and essential goods and services.
Source: Legit.ng
