The Centre for the Promotion of Private Enterprise (CPPE), a leading organized private sector advocacy group, on Monday urged the Senate, the upper chamber of the National Assembly, to discontinue the deliberations by its Finance Committee to amend the Customs and Excise Act for the purposes of increasing excise duty on non-alcoholic beverages.
The Director/Chief Executive Officer of the CPPE, Dr. Muda Yusuf, in a Policy Note capturing the position of the group on the proposed amendment of the Act, maintained that the call for the suspension of the deliberation on the legislative process was made after thorough review and consultation with industry stakeholders, economic experts, and public policy analysts.
Specifically, the renowned economist noted that the current economic realities in the country had rendered the proposal counterproductive and potentially harmful to national economic recovery and the welfare of the people.
Secondly, the CPPE boss pointed out that Excise policy rate-setting should remain an administrative function, not legislated into the Customs and Excise Act, as fiscal measures must remain flexible and responsive to prevailing macroeconomic conditions.
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Yusuf, who substantiated the CPPE stance on why the proposed amendments of the Customs and Excise Duty Act should be discontinued by the Senate Committee on Finance with sundry macroeconomic indices as they related to the negative implications for the manufacturing industry and human resource development in the country, maintained that government should prioritise broader public health strategies rather than using taxation as the primary tool as “nutrition education and awareness campaigns are more effective and less socially disruptive.”
This is even as he canvassed the need for stronger government–industry collaboration in the health sector programmes as manufacturers are willing partners in promoting health-conscious consumer choices, including the production of low-sugar and zero-sugar variants.
The CPPE CEO, therefore, charged the Senate Committee on Finance to reconsider the proposal in light of its potential economic, social, and institutional consequences just as the Presidency and Federal Ministry of Finance should reaffirm the role of the executive in setting excise duty rates and ensuring coherence across fiscal policy domains.
In addition, he advised the Ministry of Health to collaboratively work with manufacturers, civil society, and nutrition experts on non-tax health interventions while industry stakeholders must be committed to responsible advertising, voluntary sugar reduction programmes, and consumer awareness campaigns.
In the CPPE’s concluding position on the need for the Senate to continue the proposed amendment of the Act, the CEO stressed: “Nigeria is currently navigating a fragile economic recovery pathway. The manufacturing sector, a vital engine of employment and growth, needs policies that support stability, competitiveness, and resilience. The proposed increase in excise duty on non-alcoholic beverages threatens to undermine these objectives, jeopardizing livelihoods, welfare, investment, and long-term industrial development.
“In the interest of economic stability, job protection, and sound public health strategy, we strongly urge the withdrawal of the proposed amendment.
“A collaborative, evidence-based, and economically sensitive approach remains the best path forward for both public health and Nigeria’s manufacturing competitiveness”, Yusuf added.
