By Oso Abidemi
The Manufacturers Association of Nigeria (MAN), has raised concerns over the proposed increase in excise duty on sugar-sweetened beverages (SSBs), warning that it could threaten jobs, disrupt local production, and deter investment in the sector.
Speaking before the Senate Joint Committee on Finance, Adeniyi Folorunsho, MAN’s Director at the Abuja Liaison Office, noted that companies in the SSB industry are already operating on thin margins, and a higher tax could weaken plant viability and push consumers toward informal, potentially unsafe products.
“Such a move could destabilise one of Nigeria’s most enduring manufacturing sectors,” MAN stated, urging lawmakers to suspend the proposal until it aligns with the Executive’s fiscal policies.
Citing World Health Organization assessments, MAN challenged claims that SSBs are a major driver of obesity and other noncommunicable diseases, pointing out that Nigeria’s per capita sugar intake remains among the lowest globally.
The association warned that unchecked tax hikes could shrink the sector’s Gross Value Added and negatively impact micro, small, and medium-sized enterprises, projecting a potential drop in sector output from ₦1.5 trillion to ₦1.1 trillion by 2030.
MAN called for evidence-based policies that balance public health objectives with economic sustainability, protect jobs, and safeguard Nigeria’s manufacturing base.
