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Food and Beverage Workers Union Opposes Proposed Soft Drinks Tax Hike

The National Union of Food, Beverage and Tobacco Employees (NUFBTE) has formally petitioned the House of Representatives to reject the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill, 2025.

The proposed legislation seeks to replace the current fixed excise duty of N10 per litre on sugar-sweetened beverages with a percentage-based levy linked to retail prices. Union President Garba Dankama warned that the shift would impose an unsustainable burden on manufacturers already grappling with high energy costs, FX constraints, and declining consumer purchasing power. He argued that the tax could trigger factory closures and widespread job losses across the manufacturing, agricultural, and retail value chains without delivering significant public health benefits. While government proponents cite the need to curb rising non-communicable diseases like diabetes and hypertension as the driver for the bill, industry stakeholders, including the Manufacturers Association of Nigeria and NECA, maintain that the policy will stifle investment and hurt consumer affordability.

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