CIFIAN warns against higher SSB taxes, cites threat to Nigeria’s sugar economy and jobs 

NIGERIA – The Chartered Institute of Financial and Investment Analysts, Nigeria (CIFIAN), has called on the Federal Government to reconsider its planned increase in excise duties on sugar-sweetened beverages (SSBs).  

The institute warned that raising the levy could undermine the Nigerian sugar industry, disrupt jobs, and derail the country’s sugar development agenda. 

Speaking at a high-level policy workshop titled “Understanding the Impact of SSB Taxation on Nigeria’s Sugar Economy: Supply, Demand, and the Policy Disconnect,” CIFIAN President, Prof. Godfrey Omojefe, highlighted that while lower sugar consumption may deliver health benefits, steep tax hikes could also cause unintended consequences.  

He noted that the excise duty would shrink the beverage market, trigger consumer boycotts, and hinder the implementation of the Nigeria Sugar Master Plan (NSMP). 

Prof. Omojefe stressed that the government’s sugar-sweetened beverage tax policy should be aligned with broader public health objectives as well as Nigeria’s industrial development priorities.  

He warned that introducing sharp tax increases without a coherent framework would harm the sugar economy, weaken industrial growth, and fail to achieve desired health outcomes. 

He added that the N10 per litre excise duty on SSBs, first introduced in 2022, has already placed a significant burden on the sugar supply chain.  

“Nigeria’s sugar intake remains lower than the World Health Organisation (WHO) benchmark and far below many African and global peers,” he said, cautioning that punitive taxation without addressing broader lifestyle and dietary factors would have limited public health impact. 

According to Omojefe, a more balanced solution would be a nuanced taxation system that encourages reformulation of healthier beverages and supports innovation across the sector.  

He proposed that all high-sugar products should be treated fairly under taxation, rather than singling out SSBs for excise duties. 

Data from the National Sugar Development Council (NSDC) shows that national sugar consumption declined by 16% in 2023, while domestic production dropped 35%, from 46,479 metric tonnes in 2022 to 30,053 metric tonnes in 2023.

Omojefe attributed these declines to both economic pressures and the direct impact of SSB taxation on beverage manufacturers, who are among the largest industrial consumers of sugar. 

The warning comes as Nigeria intensifies efforts to expand its sugar production capacity and reduce dependence on imports. The NSDC recently signed agreements with four operators—Brent Foods, Niger Foods, Legacy Sugar, and UMZA—to establish greenfield sugar projects with a combined annual output of 400,000 tonnes. 

Nigeria has spent over N2.2 trillion on sugar imports in the past five years, according to the National Bureau of Statistics (NBS), underscoring the urgency of strengthening domestic production. 

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