By theG&BJournal
TUE MAR 24 2026-theGBJournal| The Centre for the Promotion of Private Enterprise (CPPE) has pushed back against proposals to impose additional taxes on sugar-sweetened beverages (SSB) as canvassed by the Corporate Accountability and Public Participation Africa (CAPPA), arguing that the move could deepen cost pressures across Nigeria’s already strained manufacturing sector.
”The proposal is ill-conceived, poorly timed, and inconsistent with the current administration’s tax reform agenda, which is anchored on reducing the burden of taxation on businesses, improving tax efficiency, and stimulating investment,” CPPE argues in their policy brief released today.
Coming at a time when the Nigerian economy is still navigating a fragile recovery, elevated energy costs, forex volatility and weak consumer demand, the think tank warns the imposition of new taxes on the manufacturing sector—particularly a highly energy-intensive segment such as the sugar-sweetened beverage industry—would be profoundly counterproductive and disruptive to growth, employment, and investment.
CPPE stressed that piling new taxes on the industry risks triggering a ripple effect across critical value chains—from sugar suppliers and packaging firms to distributors and retailers.
It notes that the food and beverage sector is a critical component of Nigeria’s industrial ecosystem and the largest employers in the manufacturing space.
”It supports an extensive value chain spanning Agriculture and raw material supply (including sugar, fruits, and packaging inputs), Manufacturing and processing, Logistics and distribution as well as Retail and hospitality
The sugar-sweetened beverage segment plays a particularly strategic role because of its scale, distribution reach, and integration with multiple upstream and downstream sectors.”
According to the group, higher production costs would likely be passed on to consumers, dampening demand and ultimately squeezing margins for businesses operating on thin buffers.
Beyond pricing concerns, the organisation flagged potential job losses across production, distribution, and retail segments and stalled investments as companies reassess expansion plans in an increasingly hostile cost environment.
It urged policymakers to prioritise measures that support industrial growth and ease operational burdens, rather than introducing policies that could undermine competitiveness and economic recovery.
The think-tank added that the proposal for further tax hike is misaligned with Nigeria’s current economic realities, inconsistent with ongoing tax reforms, and particularly unjustifiable given the extraordinary energy cost pressures confronting the industry.
”The policy imperative should be to support businesses, protect jobs, and strengthen growth—not impose additional tax burdens on an already strained sector,” CPPE said.
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