The National Union of Food, Beverage and Tobacco Employees (NUFBTE) has urged the House of Representatives to reject a proposed change to Nigeria’s soft drinks tax, warning that higher production costs could force manufacturers to close factories and lay off workers.
The union made its position known in an open letter to the Speaker of the House, Tajudeen Abbas, signed by its president, Garba Dankama. It wants lawmakers to withhold concurrence on the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill, 2025, which the Senate passed on 4 June 2026 and is awaiting approval by the House.
The proposed legislation would replace the existing excise duty of ₦10 per litre on sugar-sweetened beverages with a levy calculated as a percentage of retail prices. The Minister of Finance would determine the applicable rate, while part of the revenue would support public health initiatives, primary healthcare and health insurance for vulnerable Nigerians. Brandspur Brand News reports that the bill has not yet become law.
Dankama argued that manufacturers were already contending with high borrowing costs, rising energy and transport expenses, foreign exchange difficulties and weaker consumer spending. He said some companies had reduced production or shut down certain lines, leaving the sector with limited capacity to absorb further financial pressure.
The union warned that the consequences could extend beyond beverage factories to farmers, transport operators, distributors and retailers who depend on the industry for their livelihoods. Dankama said a further increase in the tax burden could trigger more closures and retrenchments, threatening jobs across the supply chain.
He also challenged the public health justification for the proposed levy, arguing that soft drinks account for about five per cent of the sugar consumed in Nigeria. In his view, increasing the tax could push consumers towards cheaper, unregulated alternatives while placing additional pressure on businesses and workers.
The union president further said workers’ earnings had failed to keep pace with rising food, transport and housing costs following the removal of the petrol subsidy and foreign exchange reforms. He warned that further pressure on employers could deepen the difficulties facing workers already struggling with higher living expenses.
NUFBTE is not alone in opposing the proposed change. The Centre for the Promotion of Private Enterprise has also called on the House to reject the bill, while the Manufacturers Association of Nigeria, the Nigeria Employers’ Consultative Association and the Abuja Chamber of Commerce and Industry have raised concerns about the possible effects of a percentage-based levy on production costs and investment.
Supporters of the legislation, however, argue that the existing ₦10-per-litre charge has lost much of its effectiveness because of inflation. The Senate’s position is that the current rate no longer provides a sufficient deterrent to excessive sugar consumption or generates adequate revenue.
Corporate Accountability and Public Participation Africa has welcomed the bill and urged lawmakers to approve it without delay, backing its stated aim of addressing health conditions associated with excessive sugar consumption, including diabetes, obesity and hypertension.
The Federal Ministry of Health has estimated that about eight per cent of Nigerians, equivalent to roughly 18 million people, live with diabetes.
The House of Representatives now faces competing demands over a proposal that seeks to raise public health revenue while prompting concerns about employment, manufacturing costs and the wider economic consequences for businesses and consumers.
