The Manufacturers Association of Nigeria (MAN) has warned that the proposed increase in the excise duty on sugar-sweetened beverages (SSBs) could undermine local production, threaten jobs, and distort investment in the sector.

In a submission to the Senate Joint Committee on Finance, MAN said the amendment, which seeks to move from the current flat ₦10-per-litre tax to a higher rate, comes at a time when companies are operating on thin margins. Director of the Abuja Liaison Office, Adeniyi Folorunsho, who made the presentation on behalf of the association, cautioned that the proposal could disrupt production, weaken plant viability, and increase imports of sugar, contrary to the objectives of the Nigeria Sugar Master Plan.

“Such a move could destabilise one of Nigeria’s most enduring manufacturing sectors,” MAN said, urging lawmakers to withdraw the proposed excise rate pending full alignment with the Executive’s fiscal process.

The association also questioned the narrative that SSBs are a major driver of obesity and other noncommunicable diseases (NCDs) in Nigeria.

Citing multiple studies, including World Health Organization (WHO) assessments, MAN said NCDs are multifactorial, influenced by genetics, sedentary lifestyles, poor healthcare access, and socio-economic pressures.

It added that Nigeria’s per capita sugar consumption is among the lowest in the world and remains within WHO’s recommended safe limits, with SSBs contributing only a small fraction of household sugar intake.

MAN further warned that steep or frequent tax hikes could push consumers towards unsafe informal products, shrink the sector’s Gross Value Added, and weaken micro, small, and medium-sized enterprises (MSMEs).

Projections suggest that without careful planning, the sector’s output could drop from ₦1.5 trillion to ₦1.1 trillion by 2030.

The association urged lawmakers to pursue evidence-based, balanced fiscal policies that align public health objectives with economic realities, protect MSMEs, and safeguard jobs.

“Policymakers must avoid public health interventions that unintentionally create economic hardship without measurable improvements in health outcomes,” the submission said. (The Guardian)

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