The Abuja Chamber of Commerce and Industry (ACCI) has called for the suspension of the Sugar-Sweetened Beverages (SSBs) tax bill recently approved by the Senate and urged the House of Representatives to carefully reconsider the proposal before any further legislative action.
The proposed amendment to the Customs and Excise Tariff framework seeks to replace the current flat excise duty on SSBs with a percentage-based levy linked to retail prices.
While acknowledging the Federal Government’s commitment to improving public health outcomes, the Chamber cautions that the policy, as currently structured, could impose significant economic burdens on businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), and adversely affect investments, productivity, and employment across the beverage value chain.
Speaking on the development, the President of the ACCI, Chief Emeka Obegolu, SAN, PhD, stated that the non-alcoholic beverage industry supports a broad network of manufacturers, distributors, retailers, transporters, hospitality operators, and informal traders whose livelihoods depend on the sector.
This was contained in a statement by Olayemi John-Mensah, ACCI Media and Strategy Officer.
He noted that introducing additional fiscal burdens at a time of rising inflation, foreign exchange volatility, escalating energy costs, and other operational challenges could weaken business sustainability, discourage investment, and threaten jobs. As the leader of the Organised Private Sector (OPS) in the Federal Capital Territory and its environs, Chief Obegolu emphasized that fiscal policies must be carefully designed to support both public health objectives and economic growth.
The ACCI President further observed that the proposed shift from a predictable per-litre excise duty to a retail-price-based tax model would create uncertainty for businesses and investors.
According to him, such a system could complicate long-term planning, increase compliance costs, and further raise the cost of doing business in an already challenging operating environment.
While reaffirming the Chamber’s support for efforts to combat non-communicable diseases (NCDs), he stressed that effective public health interventions should be evidence-based, predictable, and designed to encourage innovation rather than impose excessive burdens on productive sectors of the economy.
Consequently, ACCI recommends a balanced, evidence-based, and consultative approach to achieving public health goals without undermining industrial competitiveness.
Specifically, the Chamber urges lawmakers to suspend further consideration of the proposed percentage-based levy and engage stakeholders in broader consultations.
ACCI also recommends the adoption of a sugar-content-based excise framework that taxes beverages according to actual sugar levels, thereby encouraging manufacturers to reformulate products and reduce sugar content.
In addition, any amendment to the tax regime should be harmonized with the Federal Government’s broader fiscal reform agenda to avoid multiple taxation and additional compliance burdens on businesses already subject to various taxes and levies.
“We are not choosing between health and wealth; we are advocating a policy framework that achieves both,” Chief 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.”
Furthermore, the Chamber urged the Federal Government to ensure that revenues generated from any sweetened beverage tax are transparently invested in health education, nutrition awareness campaigns, non-communicable disease prevention programmes, and support initiatives that enable local manufacturers to develop healthier product alternatives.
ACCI reaffirmed its commitment to constructive engagement with government, lawmakers, regulators, and industry stakeholders in developing policies that simultaneously promote public health, protect jobs, strengthen private sector competitiveness, and advance Nigeria’s economic development.
