The Manufacturers Association of Nigeria (MAN) has issued a strong warning against the proposed increase in excise duty on sugar-sweetened beverages (SSBs), stating it could severely impact local manufacturing and threaten thousands of jobs across the sector.
Economic Threats to Manufacturing Sector
In a formal submission made on 28 November 2025 to the Senate Joint Committee on Finance, MAN represented by Adeniyi Folorunsho, Director of the Abuja Liaison Office, cautioned that the proposed tax amendment comes at a critical time when manufacturing companies are already operating on thin profit margins.
The association emphasized that shifting from the current flat ₦10-per-litre tax to a higher rate could disrupt production activities and weaken plant viability. MAN specifically warned that such a move might increase sugar imports, directly contradicting the objectives of the Nigeria Sugar Master Plan.
Questioning Public Health Justifications
MAN challenged the narrative that SSBs are primary drivers of obesity and noncommunicable diseases in Nigeria. The association cited multiple studies, including World Health Organization assessments, indicating that NCDs result from multiple factors including:
- Genetic predispositions
- Sedentary lifestyles
- Poor healthcare access
- Socio-economic pressures
The association highlighted that Nigeria's per capita sugar consumption ranks among the lowest globally and remains within WHO's recommended safe limits. According to their data, SSBs contribute only a small fraction to household sugar intake.
Projected Economic Consequences
MAN projected severe economic consequences if the tax hike proceeds without careful planning. The association warned that steep or frequent tax increases could:
- Push consumers toward unsafe informal products
- Shrink the sector's Gross Value Added
- Weaken micro, small, and medium-sized enterprises (MSMEs)
Alarming projections suggest the sector's output could decline from ₦1.5 trillion to ₦1.1 trillion by 2030 without appropriate policy adjustments.
The manufacturers urged lawmakers to withdraw the proposed excise rate pending full alignment with the Executive's fiscal process. They called for evidence-based, balanced fiscal policies that align public health objectives with economic realities while protecting MSMEs and safeguarding employment.
"Policymakers must avoid public health interventions that unintentionally create economic hardship without measurable improvements in health outcomes," the association concluded in their submission.
