The Centre for the Promotion of Private Enterprise (CPPE) has issued a stern warning against renewing the sugar-sweetened beverage (SSB) tax, labeling it a threat to Nigeria’s fragile industrial recovery.
In a statement released on Wednesday, January 21, 2026, CEO Muda Yusuf argued that while public health concerns are valid, an additional fiscal burden on the non-alcoholic beverage sector, the backbone of Nigeria’s manufacturing, could trigger mass job losses and further stifle economic growth.
The group noted that retail prices for beverages have already surged by 50 percent over the last two years due to existing inflationary pressures, making further tax-driven price hikes unsustainable for the average consumer.
The CPPE highlighted that the beverage industry sustains a complex value chain involving millions of livelihoods in farming, logistics, and retail. According to National Bureau of Statistics (NBS) data, the food and beverage sub-sector contributes approximately 40 percent of total manufacturing output.
Yusuf warned that imposing a sugar tax in isolation often fails to improve public health outcomes in developing economies, as it does not address underlying drivers of disease such as poor overall diet quality and sedentary lifestyles. Instead, the immediate economic consequences: higher prices and reduced demand, would likely outweigh the long-term, unproven health benefits.
Existing fiscal pressures on manufacturers are already substantial, including a 30 percent company income tax, 7.5 percent VAT, and a recently proposed 4 percent National Development Levy.
These are compounded by 180°C energy costs for industrial processing, exchange-rate volatility, and expensive logistics. The CPPE argues that the proposed sugar tax is often influenced by global policy templates that ignore Nigeria’s specific macroeconomic realities, such as high poverty levels and a weak social safety net.
As an alternative to punitive taxation, the CPPE urged the Federal Government to prioritize nutrition education, community health programs, and subsidies for healthy food options. The group maintains that public health and economic growth are not mutually exclusive, but achieving both requires balanced, evidence-based policymaking rather than additional pressure on a vital employment base.
With the Nigerian Senate still deliberating on amendments to the SSB tax, the private sector remains on high alert, calling for a “structural reset” that protects industrial capacity while addressing health through lifestyle-based interventions.
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