The Manufacturers Association of Nigeria (MAN) has raised concerns that the proposed hike in excise duty on sugar-sweetened beverages (SSBs) could hurt local production, cost jobs, and derail investment in the sector.
Speaking before the Senate Joint Committee on Finance, MAN’s Abuja Liaison Director, Adeyemi Folorunsho, said the move—from the current flat ₦10-per-litre levy to a higher rate—comes at a time when many manufacturers are already operating on razor-thin margins. He warned that a sudden increase could disrupt production, weaken the viability of plants, and drive up sugar imports, undermining the Nigeria Sugar Master Plan.
“Such a tax could destabilize one of Nigeria’s most resilient manufacturing sectors,” Folorunsho said, urging lawmakers to reconsider the hike and align it with broader fiscal policies.
MAN also challenged claims that SSBs are a major contributor to obesity and other noncommunicable diseases (NCDs). Citing WHO studies, the association said NCDs are multifactorial, influenced by genetics, lifestyle, healthcare access, and socio-economic factors. Nigeria’s sugar consumption remains among the world’s lowest, with SSBs contributing only a small portion of intake.
The association warned that steep or frequent tax hikes could push consumers toward unsafe informal products, shrink sector output, and strain MSMEs. Without careful planning, Nigeria’s SSB sector could see output fall from ₦1.5 trillion to ₦1.1 trillion by 2030.
MAN called on lawmakers to adopt balanced, evidence-based policies that protect jobs, support MSMEs, and promote public health without unintended economic harm.