The Centre for the Promotion of Private Enterprise (CPPE) has called on the Senate to abandon its proposal to raise excise duty on sugar-sweetened beverages from ₦10 to ₦130 per litre, warning that the steep increase would harm manufacturers and intensify pressure on consumers.

CPPE CEO, Muda Yusuf, described the proposed hike as ill-timed, noting that beverage companies are already grappling with rising production costs, weakening consumer demand, and persistent forex instability. He cautioned that the new tax could trigger job losses, reduce industry competitiveness, and potentially force some businesses to shut down.

Yusuf also criticised plans to legislate a fixed excise rate, arguing that fiscal policies should remain flexible in order to respond to changing economic conditions. Fixing rates by law, he said, could limit the government’s ability to adapt to future challenges.

While certain health-advocacy groups have backed the increase as a measure to discourage excessive sugar consumption, major industry associations oppose it, citing broader economic risks.

CPPE urged the Senate to retain the current ₦10 per litre rate and instead adopt more comprehensive strategies for promoting healthier dietary habits among Nigerians. Visit www.jocomms.com for more news.