Nigeria’s Organised Private Sector of Nigeria (OPSN) has rejected the Federal Government’s proposed 20% excise tax increase on non-alcoholic beverages, warning that the measure could destabilize the economy, threaten jobs, and undermine President Bola Tinubu’s fiscal reform agenda.
At a public hearing in Abuja, representatives from the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the National Association of Small and Medium Enterprises (NASME), and the National Association of Small Scale Industrialists (NASSI) argued that the levy would have devastating consequences for the industry.
They stressed that the non-alcoholic beverage sector already contributes 40–45% of gross revenues as taxes, and piling on additional excise duties would not necessarily boost government revenue. Instead, they warned, it could reduce industrial output and shrink collections, as companies struggle under the weight of rising costs. The OPSN emphasized that the industry supports 1.5 million jobs nationwide, and higher taxes could trigger widespread layoffs.
Manufacturers explained that they are already grappling with inflation, high borrowing costs, and energy challenges, and the new levy could push many firms into crisis. Business leaders also criticized Nigeria’s increasingly fragmented tax system, saying overlapping levies introduced without proper impact assessments risk creating instability rather than reform.
Analysts note that the clash highlights the tension between government efforts to raise revenue and the private sector’s push to protect jobs and investment. For consumers, the tax could mean higher prices for everyday beverages, while for businesses, it threatens to discourage expansion and innovation.
The OPSN urged lawmakers to withdraw the bill, insisting that fiscal reforms should focus on streamlining taxes and supporting industrial growth, not burdening companies already under severe pressure.
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