Nigeria’s soft drink industry faces trouble because the Senate plans higher excise duties.
Consequently, CPPE’s CEO, Dr Muda Yusuf, warned that this move could harm the fragile economic recovery.
Economic Warning
The think tank explained that extra taxes would strain manufacturers and increase costs for consumers.
Moreover, CPPE stated on Monday, “The current economic realities make this proposal counterproductive.”
Soft Drinks Excise, Impact On Jobs
The Senate aims to amend the Customs and Excise Act, specifically targeting non-alcoholic beverages.
Therefore, CPPE argued that lawmakers must align fiscal measures with Nigeria’s broader economic conditions and recovery path.
Furthermore, the manufacturing sector, which drives jobs and growth, requires stability and supportive policies.
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If the excise hike proceeds, soft drink factories may close, profits could fall, and thousands of jobs may disappear.
In addition, indirect employment in distribution, retail, and supply chains could face serious setbacks.
CPPE also warned that higher excise duty might discourage investment in the manufacturing sector.
Health And Policy
The group emphasised that public health relies on education, awareness, and proper regulation rather than punitive taxation.
Otherwise, heavy taxes risk stifling business without improving health outcomes.
Meanwhile, the Senate intends to use revenue from sugar-sweetened beverage taxes to fund health projects.
Senator Ipalibo Banigo sponsored the bill, which passed the second reading last week.
Therefore, CPPE urged lawmakers to consider long-term industrial development alongside citizens’ welfare.
The think tank called on the government to balance revenue generation with economic recovery.
For now, the soft drink industry watches anxiously, hoping the Senate will reconsider its proposal.
