The Manufacturers Association of Nigeria has called on the Federal Government to withdraw the proposed Customs and Excise Tariff Amendment (CETA) Bill 2025, warning that the planned increase in taxes on sugar-sweetened beverages (SSBs) could hurt manufacturing, threaten jobs, and discourage investment.
In a statement issued on behalf of operators in the non-alcoholic beverage sector, MAN urged the Ministry of Finance to suspend the proposed legislation and adopt a more coordinated and evidence-based approach to excise taxation.
The proposed CETA Bill seeks to replace the current excise duty of N10 per litre on sugar-sweetened beverages with a new levy based on a percentage of the retail price of products.
Segun Ajayi-Kadir, Director-General of MAN, said the proposal could create confusion within Nigeria’s fiscal system by introducing a parallel excise framework that conflicts with existing tax policies.
According to him, the bill risks undermining the recently introduced Fiscal Policy Measures (FPM) 2026–2028 framework, which was designed to provide stability, predictability, and confidence for businesses and investors.
Ajayi-Kadir noted that conflicting fiscal policies could weaken investor confidence, distort business planning, and reduce the effectiveness of government initiatives such as the Nigeria First Policy and the Nigeria Sugar Master Plan (NSMP II).
“The introduction of multiple and overlapping tax frameworks sends mixed signals to investors and could erode the gains achieved through recent fiscal reforms,” he said.
MAN also expressed concern over the proposal to calculate excise duties based on retail prices rather than the current ex-factory or ex-warehouse pricing structure.
The association argued that such a shift could create legal ambiguities, enforcement difficulties, and administrative inefficiencies for both manufacturers and regulators.
According to MAN, manufacturers are already burdened by a combination of taxes and levies, including Value Added Tax (VAT), Company Income Tax (CIT), import duties, excise duties, and regulatory charges.
The group said these obligations have pushed effective tax rates for some manufacturers beyond 40 per cent, placing significant pressure on businesses, especially micro, small and medium-sized enterprises (MSMEs).
Ajayi-Kadir highlighted the strategic importance of the non-alcoholic beverage industry to Nigeria’s economy, noting that the sector accounts for about 33 per cent of the country’s manufacturing output and supports more than 1.5 million direct and indirect jobs.
He added that despite inflation, foreign exchange challenges, and rising energy costs, operators in the sector have continued to make substantial contributions to government revenue.
According to MAN, tax remittances from the sector increased from N123 billion in 2022 to N127 billion in 2023, demonstrating the industry’s resilience amid difficult operating conditions.
The association, however, warned that many companies are already operating under severe financial strain, with some recording losses for consecutive years while still meeting tax obligations.
MAN reaffirmed its support for the Federal Government’s efforts to improve public health and boost revenue generation but stressed that fiscal policies should be carefully coordinated to avoid unintended economic consequences.
The association urged policymakers to engage industry stakeholders and undertake comprehensive impact assessments before implementing additional taxes that could affect production, employment, and investment.
According to MAN, maintaining a predictable, balanced, and growth-oriented tax regime remains essential to sustaining industrial expansion, attracting investment, and supporting Nigeria’s broader economic development goals.
