The Lagos Chamber of Commerce and Industry (LCCI) has warned that the proposed Sugar-Sweetened Beverage (SSB) Tax could deepen the challenges facing Nigeria’s manufacturing sector, amid rising production costs and a fragile economic environment.
According to Vanguard, the LCCI expressed concerns following the Senate’s passage of the SSB Tax Bill, arguing that while public health concerns linked to excessive sugar consumption deserve attention, additional taxes could place further pressure on manufacturers already struggling with multiple economic challenges.
LCCI Director-General, Dr. Chinyere Almona, noted that manufacturers are currently grappling with high energy costs, exchange rate volatility, elevated interest rates, logistics bottlenecks, multiple taxation, and weak consumer purchasing power. She warned that introducing new taxes on beverage producers could increase production costs, which may ultimately be transferred to consumers through higher prices.
The chamber also cautioned that the policy could have unintended consequences across the industrial value chain, affecting suppliers, distributors, transport operators, retailers, farmers, and other businesses connected to the beverage industry. According to the LCCI, a decline in production volumes could result in lower investments, reduced capacity utilisation, and potential job losses.
While acknowledging the need to address public health concerns, the LCCI advocated a more balanced approach that combines consumer education, improved product labelling, voluntary product reformulation, and broader stakeholder engagement. The chamber argued that a reformulation-focused tax framework would be more effective in achieving health objectives without undermining industrial growth and employment.
The position echoes concerns previously raised by economic policy experts, including the Centre for the Promotion of Private Enterprise (CPPE), which warned that additional sugar taxes could increase costs for manufacturers, threaten jobs, and weaken consumer demand at a time of high inflation and economic pressure.
The debate over the sugar tax comes as policymakers seek to balance public health objectives with economic growth, job creation, and the sustainability of Nigeria’s manufacturing sector.
Source: Vanguard Newspaper
