ACCI Urges Suspension of Proposed Sweetened Beverage Tax, Warns of Threat to Jobs and Investments
Oru Leonard
The Abuja Chamber of Commerce and Industry (ACCI), has called for the suspension of the proposed Sugar-Sweetened Beverages (SSBs) tax bill recently approved by the Senate, warning that the measure could negatively impact jobs, investments, and the growth of Micro, Small and Medium Enterprises (MSMEs) across Nigeria.
In a statement issued on Tuesday, ACCI President, Emeka Obegolu, urged the House of Representatives to reconsider the proposal, which seeks to replace the current flat excise duty on sweetened beverages with a percentage-based levy tied to retail prices.
According to the Chamber, while the Federal Government’s efforts to improve public health are commendable, the proposed tax structure could impose additional financial pressure on businesses already grappling with inflation, foreign exchange volatility, rising energy costs, and other operational challenges.
Obegolu noted that Nigeria’s non-alcoholic beverage industry sustains a vast network of manufacturers, distributors, retailers, transporters, hospitality operators, and informal traders, warning that increased taxation could weaken business sustainability, discourage investment, and lead to job losses throughout the value chain.
He further expressed concern that shifting from a predictable per-litre excise duty to a retail-price-based tax model would create uncertainty for businesses and investors, complicate long-term planning, increase compliance costs, and further raise the cost of doing business.
While reaffirming support for measures aimed at reducing non-communicable diseases, the ACCI president stressed 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.
The Chamber therefore recommended a more consultative and balanced approach, including the adoption of a sugar-content-based excise framework that taxes beverages according to actual sugar levels. ACCI argued that such a model would incentivize manufacturers to reformulate products and reduce sugar content while safeguarding industrial competitiveness.
“We are not choosing between health and wealth; we are advocating a policy framework that achieves both,” Obegolu stated, emphasizing that Nigeria can improve public health outcomes while preserving jobs, attracting investments, and maintaining the competitiveness of its manufacturing sector.
The Chamber also called on 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 engaging with government, lawmakers, regulators, and industry stakeholders to develop policies that promote public health while strengthening private sector growth and Nigeria’s economic development.
