Nigeria’s top business associations have urged the Federal Government to shelve the proposed amendment to the Customs, Excise and Tariff Bill, warning that it could destabilise the country’s tax system and derail President Bola Tinubu’s fiscal reform efforts.
The Organised Private Sector of Nigeria (OPSN), which brings together the Manufacturers Association of Nigeria, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Nigeria Employers’ Consultative Association, and other key industry bodies, called on the National Assembly to retain the current excise rates on non-alcoholic drinks.
In a position paper presented on Thursday, OPSN said the proposed hike “contains mathematical, legal and administrative inconsistencies” and would impose heavy economic costs on businesses and consumers without delivering measurable public health benefits.
The association stressed that the non-alcoholic beverage sector currently supports 1.5 million jobs, drives backward integration under the Nigeria Sugar Master Plan II, and contributes 40–45 per cent of gross tax revenues, all while operating under thin margins. It warned that a steeper levy could raise operating costs, reduce production capacity, drive up retail prices, and shrink VAT and corporate tax collections.
OPSN also criticised the National Assembly for advancing the bill without consulting key institutions, including the Ministry of Finance, the Presidential Fiscal Policy & Tax Reform Committee, and the Federation Account Allocation Committee, arguing that the amendment conflicts with national industrialisation priorities and the government’s ease-of-doing-business objectives.
Advocacy groups such as Corporate Accountability and Public Participation Africa (CAPPA) continue to push for a sharp SSB tax increase - from N10 to N130 per litre - citing potential public health gains and reductions in noncommunicable diseases.
While rejecting the proposed amendment, OPSN said it remains willing to engage with lawmakers, fiscal authorities, and civil society to ensure any future adjustments to excise taxes are fair, sustainable, and supportive of investment, jobs, and long-term revenue stability.
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