Manufacturers under the Manufacturers Association of Nigeria have opposed a proposed increase in excise duty on carbonated sugar sweetened beverages as the Senate considers an amendment to the Customs and Excise Tariff Consolidation Act.
Stakeholders aired divergent views at a public hearing jointly organised by the Senate Committees on Finance and Customs on the proposed amendment last week. The bill seeks to raise the current excise tax on sugar sweetened beverages from N10 per litre to at least 20 per cent of the retail price, in line with the recommendation of the World Health Organisation. A portion of the revenue is also proposed to be earmarked for health promotion and disease prevention programmes.
Proponents of the amendment argued that the measure would discourage excessive consumption of sugary drinks and improve public health outcomes. However, manufacturers warned that the proposed hike could have severe economic implications for the manufacturing sector.
Presenting the position of MAN, its director, Mr Adeyemi Folorunsho, cautioned lawmakers against the amendment, noting that it could lead to job losses and higher production costs. He dismissed claims that sugar sweetened beverages are a major cause of rising cases of diabetes and obesity in Nigeria.
Folorunsho said Nigeria has one of the lowest sugar consumption rates globally, putting it at 8.3 million kilogrammes against the expected 22.1 million kilogrammes. He urged the Senate committees to adopt what he described as a win win approach that would protect both public health and the manufacturing sector.
In contrast, the Federal Ministry of Health threw its weight behind the bill. The Minister, Professor Ali Pate, described the proposal as a progressive and evidence based approach to public health financing. He said increasing the excise tax and earmarking part of the revenue for health promotion would align fiscal policy with public health goals and provide sustainable funding for disease prevention.
