CPPE urges Senate to drop excise hike on soft drinks
The Centre for the Promotion of Private Enterprise has urged the Senate Committee on Finance to reconsider its proposal to modify the Customs and Excise Act to increase excise duties on non-alcoholic beverages, labeling the initiative as ill-timed and potentially harmful to Nigeria's delicate economy.
In a statement released on Monday, Dr. Muda Yusuf, CEO of CPPE, remarked that imposing additional tax burdens on beverage manufacturers is inconsistent with the current economic climate of the country.
The organization cautioned that the suggested excise hike could impede economic recovery, weaken the manufacturing industry, and exert further pressure on consumers who are already stretched thin.
“The existing economic landscape makes this proposal counterproductive and potentially detrimental to national recovery efforts and the well-being of citizens,” stated CPPE.
Recently, the Senate proposed changes to the Customs and Excise Act that would increase excise duties on non-alcoholic drinks.
CPPE pointed out that such fiscal policies must be thoughtfully aligned with the wider macroeconomic environment.
“Nigeria is currently on a delicate path to economic recovery. The manufacturing sector, an essential driver of both employment and growth, requires policies that foster stability, competitiveness, and resilience,” it noted.
CPPE highlighted that the beverage industry, which directly employs thousands and supports many more indirectly, may face significant challenges if the excise increase is implemented.
The organization warned that the likely repercussions include higher production expenses, reduced profit margins, possible factory closures, and job losses.
“The proposed hike in excise duty on non-alcoholic beverages poses a threat to these aims, putting livelihoods, welfare, investment, and long-term industrial growth at risk,” the statement continued.
The group emphasized that addressing public health concerns should not be done through heavy taxation, asserting that effective health strategies depend on education, consumer awareness, and proper regulation—not taxes that stifle business growth.
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