The Abuja Chamber of Commerce and Industry (ACCI), has called for the immediate suspension of the proposed Sugar-Sweetened Beverages (SSBs) tax bill approved by the Senate, warning that the measure could threaten jobs, discourage investment, and increase the cost of doing business across Nigeria’s beverage industry.
The Chamber also urged the House of Representatives to carefully reconsider the proposal before taking further legislative action on the bill, which seeks to replace the current flat excise duty on sugar-sweetened beverages with a percentage-based levy linked to retail prices.
While acknowledging the Federal Government’s efforts to improve public health outcomes, ACCI expressed concerns that the policy, in its current form, could place additional pressure on businesses, particularly Micro, Small and Medium Enterprises (MSMEs), at a time of economic uncertainty.
Speaking on the development, President of the ACCI, Dr. Emeka Obegolu, said the non-alcoholic beverage industry remains a critical contributor to the economy, supporting manufacturers, distributors, retailers, transporters, hospitality operators, and informal traders across the country.
He noted that imposing additional fiscal burdens amid rising inflation, foreign exchange volatility, escalating energy costs, and other operational challenges could undermine business sustainability and weaken the sector’s capacity to create jobs and attract investment.
As the leader of the Organised Private Sector (OPS) in the Federal Capital Territory and its environs, Obegolu stressed the need for fiscal policies that strike a balance between public health objectives and economic growth.
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The ACCI President further argued that moving from a predictable per-litre excise duty to a retail-price-based tax model could create uncertainty for businesses and investors.
According to him, the proposed framework may complicate long-term business planning, increase compliance costs, and further raise operational expenses in an already challenging business environment.
While reaffirming the Chamber’s support for efforts to combat non-communicable diseases (NCDs), Obegolu maintained that public health interventions should be evidence-based, predictable, and designed to encourage innovation rather than place excessive burdens on productive sectors of the economy.
Consequently, ACCI recommended a balanced, evidence-based, and consultative approach to achieving public health goals without undermining industrial competitiveness.
The Chamber specifically urged lawmakers to suspend further consideration of the proposed percentage-based levy and engage stakeholders in broader consultations before adopting any new tax framework.
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It also proposed the adoption of a sugar-content-based excise system that taxes beverages according to actual sugar levels, arguing that such a model would encourage manufacturers to reformulate products and reduce sugar content.
In addition, ACCI called for any amendment to the tax regime to be harmonised with the Federal Government’s broader fiscal reform agenda to prevent multiple taxation and additional compliance burdens on businesses already subject to various taxes and levies.
“We are not choosing between health and wealth; we are advocating a policy framework that achieves both,” Dr Obegolu stated.
“Nigeria can improve public health outcomes while preserving jobs, supporting investments, and maintaining the competitiveness of its manufacturing sector. The objective should be to encourage healthier consumption patterns without imposing unintended consequences on businesses and consumers,” he added.
The Chamber further urged the Federal Government to ensure that revenues generated from any sweetened beverage tax are transparently invested in health education, nutrition awareness campaigns, non-communicable disease prevention programmes, and initiatives that support local manufacturers in developing healthier product alternatives.
ACCI reaffirmed its commitment to constructive engagement with government, lawmakers, regulators, and industry stakeholders in developing policies that promote public health, protect jobs, strengthen private sector competitiveness, and support Nigeria’s economic development.
