The Abuja Chamber of Commerce and Industry (ACCI) has called for the suspension of the proposed Sugar-Sweetened Beverages (SSBs) tax bill recently approved by the Senate, warning that the measure could threaten jobs, discourage investment, and place additional pressure on Micro, Small and Medium Enterprises (MSMEs) already grappling with difficult economic conditions.
The Chamber urged the House of Representatives to reconsider the proposal before taking further legislative action, arguing that while efforts to improve public health are commendable, the current structure of the tax could have unintended consequences for businesses and consumers.
The proposed amendment to Nigeria’s Customs and Excise Tariff framework seeks to replace the existing flat excise duty imposed on sweetened beverages with a percentage-based levy tied to retail prices. ACCI said the transition from a fixed-rate system to a retail-price-linked model could create uncertainty across the beverage industry and increase the cost of doing business.
Speaking on the development, ACCI President, Chief Emeka Obegolu, SAN, said the non-alcoholic beverage industry plays a critical role in Nigeria’s economy, supporting a vast network of manufacturers, distributors, retailers, transport operators, hospitality businesses and informal sector traders.
According to him, introducing additional fiscal obligations at a time when businesses are already facing rising inflation, foreign exchange volatility, high energy costs and other operational challenges could undermine business sustainability and reduce the sector’s contribution to economic growth.
“The beverage industry supports thousands of jobs directly and indirectly. Policies that significantly increase operational costs could weaken investments, reduce productivity and threaten employment opportunities across the value chain,” Obegolu stated.
As the leading voice of the Organised Private Sector (OPS) in the Federal Capital Territory and surrounding areas, the ACCI stressed the need for government policies that strike a balance between public health objectives and economic development goals.
The Chamber expressed concern that the proposed retail-price-based tax regime could complicate business planning and increase compliance requirements for manufacturers and investors. It argued that predictable and transparent tax policies are essential for encouraging investment and fostering industrial competitiveness.
While reaffirming support for initiatives aimed at addressing non-communicable diseases (NCDs), including obesity and diabetes, the Chamber maintained that public health interventions should be rooted in evidence and designed to encourage innovation rather than impose excessive financial burdens on productive sectors.
ACCI recommended the suspension of further legislative consideration of the bill pending wider consultations with stakeholders. The Chamber advocated the adoption of a sugar-content-based excise framework, which would tax beverages according to their actual sugar levels rather than retail prices.
According to the Chamber, such an approach would provide incentives for manufacturers to reformulate products, reduce sugar content and introduce healthier alternatives while maintaining competitiveness and protecting jobs.
The business advocacy group also called for any proposed amendment to be aligned with the Federal Government’s broader fiscal reform agenda to avoid multiple taxation and additional compliance obligations for businesses already facing numerous levies and taxes.
“We are not choosing between health and wealth; we are advocating a policy framework that achieves both,” Obegolu said.
“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.”
ACCI urged the Federal Government to ensure transparency and accountability in the use of revenues generated from any sweetened beverage levy. The Chamber recommended that proceeds be channelled into health education programmes, nutrition awareness campaigns, prevention of non-communicable diseases and support initiatives aimed at helping local manufacturers develop healthier product offerings.
The Chamber reiterated its commitment to constructive engagement with government institutions, lawmakers, regulators and industry stakeholders to develop policies that simultaneously advance public health, strengthen private sector competitiveness and support Nigeria’s long-term economic development.
