Manufacturers under the Manufacturers Association of Nigeria (MAN) have strongly opposed a proposed amendment to increase excise duty on carbonated sugar-sweetened beverages (SSBs). The matter was the focus of a public hearing jointly organised last week by the Senate Committees on Finance and Customs to consider changes to the Customs and Excise Tariff (Consolidation) Act.
The bill proposes raising the current N10-per-litre SSB excise tax to a rate equivalent to at least 20 percent of the retail price of each product, consistent with recommendations from the World Health Organisation (WHO). It also suggests that a designated portion of the revenue generated be allocated to health promotion and disease-prevention programmes. According to supporters of the bill, the increased tax would help discourage excessive SSB consumption.
Manufacturers, however, cautioned lawmakers against the move, warning that such an increase could lead to significant job losses within the manufacturing sector. They urged policymakers to proceed carefully to avoid unintended economic consequences.
Presenting the position of MAN, Director Adeyemi Folorunsho disputed claims that sugar-sweetened beverages are a major driver of rising cases of diabetes, obesity, and related illnesses in Nigeria. He argued that the country records one of the lowest sugar-consumption rates globally, noting that Nigeria’s consumption stands at 8.3 million kilogrammes, far below the 22.1 million kilogrammes expected for a population of its size.
Folorunsho encouraged the Senate committees and other stakeholders to adopt a balanced approach that accommodates both public health and economic considerations.
In contrast, the Federal Ministry of Health, represented by Minister Professor Ali Pate, expressed strong support for the proposed amendment. The minister described the bill as a progressive and evidence-based strategy for strengthening public health financing, adding that it demonstrates political commitment while aligning fiscal measures with national health objectives.
According to Pate, earmarking part of the revenue for health promotion would offer sustainable funding for preventive programmes, which is essential for advancing universal health coverage.
The Nigeria Cancer Society, the Diabetes Association of Nigeria, and other health-sector representatives also backed the proposal, aligning with global public health recommendations aimed at reducing the burden of non-communicable diseases.