The Centre for the Promotion of Private Enterprise (CPPE) has called on the Senate Committee on Finance to withdraw its plan to amend the Customs and Excise Act to raise excise duty on non-alcoholic beverages, warning that the measure could undermine Nigeria’s fragile economic recovery.
In a statement released Monday by CPPE CEO Dr. Muda Yusuf, the think tank argued that increasing tax burdens on soft drink manufacturers is poorly timed and inconsistent with the nation’s current economic realities. The group cautioned that the proposed hike could weaken the manufacturing sector, strain consumers, and derail ongoing recovery efforts.
“The current economic realities render the proposal counterproductive and potentially harmful to national economic recovery and the welfare of the people,” the statement said.
CPPE emphasized that fiscal measures must be carefully aligned with broader macroeconomic conditions. “Fiscal tools must remain flexible and responsive to prevailing macroeconomic conditions. Nigeria is currently navigating a fragile economic recovery pathway. The manufacturing sector, a vital engine of employment and growth, needs policies that support stability, competitiveness, and resilience,” it stated.
The group highlighted the potential impact on the beverage industry, which provides thousands of direct jobs and even more indirect employment. CPPE warned that higher production costs, reduced profitability, factory closures, and possible layoffs could result if the excise duty increase is implemented.
“The proposed increase in excise duty on non-alcoholic beverages threatens to undermine these objectives, jeopardizing livelihoods, welfare, investment, and long-term industrial development,” the statement concluded.
The call comes shortly after the Senate proposed the amendment to raise excise duties, a move CPPE describes as misaligned with Nigeria’s economic priorities.
