The Centre for the Promotion of Private Enterprise (CPPE) has issued a strong warning against renewed calls for additional taxes on sugar-sweetened non-alcoholic beverages. In a statement released on Wednesday, January 21, 2026, the group’s Executive Director, Dr. Muda Yusuf, described the proposal as a “misplaced and economically risky” move that could derail Nigeria’s industrial recovery.
The warning follows recent advocacy from global health institutions and the World Health Organization’s (WHO) 2025 Global Report, which urged governments to significantly increase taxes on Sugar-Sweetened Beverages (SSBs) to combat non-communicable diseases (NCDs).
The Economic Argument: A Sector Under Siege
Dr. Yusuf argued that while public health is important, the beverage industry—which accounts for nearly 40% of total manufacturing output—is already struggling under an immense fiscal burden.
The “Tax Mountain” on Beverage Makers:
- 30% Company Income Tax
- 7.5% Value Added Tax (VAT)
- ₦10 per litre Excise Duty (introduced in 2022)
- 4% National Development Levy
- 4% FOB Levy on imported inputs
- 0.5% ECOWAS Levy
- Multiple state and local government charges
“Retail prices of many non-alcoholic beverages have already increased by about 50% in the past two years, even without new taxes. Adding more will lead to job losses, factory closures, and reduced investment,” the CPPE stated.
Challenging the Health “Best Practice”
The CPPE argued that sugar taxes are often promoted via “externally derived policy templates” that don’t fit Nigeria’s socioeconomic reality.
- Weak Evidence: The group claims that sugar taxes delivered minimal health gains in isolation unless paired with massive behavioral shifts.
- Root Causes: In Nigeria, NCDs like diabetes are driven primarily by high-carbohydrate diets (staple foods), physical inactivity, and urban designs that discourage movement, rather than just soft drink consumption.
- Macroeconomic Impact: With inflation still a concern and purchasing power fragile, a tax hike would act as a “regressive” burden on low-income households.
The “2026 Outlook” Connection
This warning comes at a delicate time. Recent projections from the Manufacturers Association of Nigeria (MAN) and the IMF suggest the manufacturing sector could grow by 3.1% in 2026 if reforms remain “friendly.” The CPPE fears a sugar tax hike would reverse these hard-won gains.
