The Centre for the Promotion of Private Enterprise (CPPE) has expressed deep concern over the proposal by the Senate Committee on Finance to amend the Customs and Excise Act to increase excise duty on non-alcoholic beverages.
According to CPPE, the proposal is economically disruptive, socially harmful, procedurally flawed, and inconsistent with Nigeria’s development and industrial policy objectives.
The CEO of CPPE, Dr. Muda Yusuf, noted that the manufacturing sector, a key job creator, is operating under extremely difficult conditions due to inflation, high energy prices, FX volatility, and weakened consumer demand.
According to him, the proposed excise duty increase will further weaken the industry’s operating capacity, reduce output, and lead to avoidable job losses.
The CPPE highlighted the potential consequences of the proposal, including increased cost of living, job losses, and decline in government revenue.
The centre also raised concerns about the procedural inconsistencies surrounding the proposal, including the lack of inter-ministerial consultation and stakeholder engagement.
The CPPE urged the Senate Committee on Finance to reconsider the proposal and prioritise broader public health strategies rather than using taxation as the primary tool.
The centre also called on the government to work collaboratively with manufacturers, civil society, and nutrition experts to promote health-conscious consumer choices.
The CPPE emphasised that the proposed increase in excise duty on non-alcoholic beverages threatens to undermine Nigeria’s economic stability, job protection, and sound public health strategy.
The centre urged the withdrawal of the proposed amendment and called for a collaborative, evidence-based, and economically sensitive approach to fiscal policy-making.
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