Nigeria’s ACCI urges suspension of proposed sugar-sweetened beverage tax 

NIGERIA – The Abuja Chamber of Commerce and Industry (ACCI) has called for the immediate suspension of the proposed Sugar-Sweetened Beverages (SSBs) tax bill approved by Nigeria’s Senate, warning that the measure could increase business costs, threaten jobs, and discourage investment across the country’s beverage industry. 

The Chamber also urged the House of Representatives to carefully review the proposal before proceeding further with legislation. The bill seeks to replace the current flat excise duty on sugar-sweetened beverages with a percentage-based levy linked to retail prices. 

While acknowledging government efforts to address public health challenges, ACCI said the proposed framework could place additional pressure on businesses, particularly Micro, Small and Medium Enterprises (MSMEs), amid prevailing economic difficulties. 

Speaking on the issue, ACCI President Dr. Emeka Obegolu said the non-alcoholic beverage industry plays a vital role in the Nigerian economy, supporting manufacturers, distributors, retailers, transporters, hospitality operators, and informal traders. 

He noted that rising inflation, foreign exchange volatility, energy costs, and other operational challenges had already created a difficult environment for businesses. 

“As the leader of the Organised Private Sector in the Federal Capital Territory and its environs, we believe fiscal policies should strike a balance between public health objectives and economic growth,” Obegolu said. 

According to him, replacing the current predictable per-litre excise duty with a retail-price-based tax model could create uncertainty for businesses and investors. 

He warned that the proposed system could complicate long-term planning, increase compliance requirements, and add to operating costs. 

While reaffirming support for efforts to combat non-communicable diseases, Obegolu stressed that public health measures should be evidence-based and designed to encourage innovation. 

Consequently, ACCI recommended a more consultative approach and proposed the adoption of a sugar-content-based excise system that taxes beverages according to their actual sugar levels. 

“We are not choosing between health and wealth; we are advocating a policy framework that achieves both,” Dr. Obegolu stated. 

“Nigeria can improve public health outcomes while preserving jobs, supporting investments, and maintaining the competitiveness of its manufacturing sector. The objective should be to encourage healthier consumption patterns without imposing unintended consequences on businesses and consumers,” he added. 

The Chamber also called for transparency in the use of revenues generated from any sweetened beverage tax, recommending investments in health education, nutrition awareness campaigns, disease prevention programmes, and initiatives supporting manufacturers developing healthier products. 

ACCI reaffirmed its commitment to working with government, regulators, lawmakers, and industry stakeholders to promote policies that support public health, protect jobs, and strengthen Nigeria’s private sector competitiveness. 

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