The Centre for the Promotion of Private Enterprise (CPPE) has urged the government to rethink plans for a sugar tax on beverages, warning that it could hurt local manufacturing and cost jobs.
CPPE CEO Dr. Muda Yusuf said while sugar taxes might slightly reduce consumption, they do not address the main causes of diabetes and related health issues, such as poor diet, lack of exercise, sedentary lifestyles, and urban living conditions.
“Taxes alone will not solve these problems. The economic impact on Nigeria’s manufacturing sector would be immediate and serious,” Yusuf said.
Instead, the CPPE recommended that the government focus on health and lifestyle programs. These include nutrition education, community awareness campaigns, promoting exercise, subsidies for fruits and vegetables, and city planning that encourages walking and cycling. “These measures tackle the root causes, provide broader benefits, and protect jobs and industry,” Yusuf added.
The organisation also highlighted that Nigeria’s beverage manufacturers already face heavy taxes, including company income tax, VAT, excise duties, import levies, and multiple state and local charges. Combined with high energy costs, logistics, and currency fluctuations, production costs have risen sharply, with retail prices up around 50 percent in the last two years even without any new taxes.
CPPE warned that introducing a sugar tax now could worsen the situation, threatening jobs, household incomes, and investment, and could slow the country’s economic recovery.
“Public health and economic growth can go hand in hand, but policies must be balanced and carefully designed,” Yusuf said.
The organisation said Nigeria’s food and beverage sector supports millions of livelihoods across farmers, suppliers, processors, retailers, and the hospitality industry. Any policy that undermines this sector could have far-reaching consequences.