ACCI Urges Senate to Halt Sweetened Beverage Tax, Warns of Job Losses and Investment Risks

The Abuja Chamber of Commerce and Industry (ACCI) is calling for an immediate suspension of the Senate-approved Sugar-Sweetened Beverages (SSB) tax bill, warning it could cripple jobs, investments, and MSMEs if passed in its current form.

The bill, an amendment to the Customs and Excise Tariff framework, seeks to replace the existing flat excise duty on SSBs with a percentage-based levy tied to retail prices. While ACCI acknowledged the Federal Government’s public health goals, it cautioned that the new structure could place heavy economic pressure on businesses.

ACCI President, Chief Emeka Obegolu in a statement signed by ACCI Media and Strategy Officer, Olayemi John-Mensah on Tuesday said the non-alcoholic beverage sector supports manufacturers, distributors, retailers, transporters, hospitality operators, and thousands of informal traders.

“Introducing additional fiscal burdens amid rising inflation, forex volatility, and high energy costs could weaken business sustainability, discourage investment, and threaten jobs,” Obegolu stated.

He argued that shifting from a predictable per-litre duty to a retail-price-based tax would create uncertainty, raise compliance costs, and complicate long-term planning for investors.

The Chamber is urging the House of Representatives to pause further action and open wider stakeholder consultations. Its key proposals to.Adopt a sugar-content-based excise as Tax drinks by actual sugar levels to incentivize reformulation and lower sugar content.

“Align any tax changes with the Federal Government’s broader agenda to avoid multiple taxation and compliance overload.

” Ensure proceeds are transparently channeled into health education, nutrition campaigns, NCD prevention, and support for local manufacturers to develop healthier alternatives.

“Effective public health interventions must be evidence-based, predictable, and encourage innovation, not impose excessive burdens,” Obegolu added. “Nigeria can improve health outcomes while preserving jobs and manufacturing competitiveness.”

ACCI reaffirmed its commitment to work with government, lawmakers, regulators, and industry players to craft policies that protect both public health and economic growth.