By Vivian Emoni
The Abuja Chamber of Commerce and Industry (ACCI) has called on lawmakers to suspend consideration of the Sugar-Sweetened Beverages (SSBs) tax amendment bill and undertake a comprehensive review of its economic implications nationwide.
Chief Emeka Obegolu, President of the ACCI, made this known while reacting to the SSBs tax bill, recently approved by the Senate, on Tuesday in Abuja.
Obegolu urged the House of Representatives to reconsider the bill already passed by the Senate, saying the proposed legislation required broader scrutiny to assess its likely impact on businesses.
According to him, the amendment seeks to replace the current flat excise duty on sugar-sweetened beverages with a tax structure based on the retail prices of products.
While acknowledging government efforts to improve public health outcomes through fiscal measures, Obegolu cautioned that the proposed tax regime could create significant economic challenges for businesses nationwide.
He said Micro, Small and Medium Enterprises (MSMEs) would be among the hardest hit, warning that the policy could reduce investment, lower productivity and threaten employment opportunities.
The ACCI president said that the non-alcoholic beverage industry supported a wide network of businesses and workers, contributing significantly to economic activities and livelihoods across Nigeria.
“These include manufacturers, distributors, retailers, transporters, hospitality operators and informal traders,” he said, adding that many households depended directly or indirectly on the sector.
Obegolu said imposing additional taxes could worsen existing business pressures, including inflation, foreign exchange volatility and rising energy costs, thereby affecting sustainability and growth prospects.
He warned that increased financial burdens on operators could weaken competitiveness, discourage further investment and limit the capacity of businesses to expand operations.
The ACCI president emphasised that fiscal policies should strike a balance between achieving public health objectives and promoting economic growth, investment and employment generation.
He said replacing a fixed excise duty with a retail-price-based tax system could create uncertainty for investors and increase compliance costs for businesses nationwide.
According to him, the proposed model may complicate business operations, particularly for smaller enterprises already facing multiple economic challenges and regulatory obligations.
Obegolu reaffirmed ACCI’s support for initiatives aimed at reducing non-communicable diseases, stressing that public health interventions should be evidence-based, predictable and innovation-driven.
He added that such policies should encourage healthier consumer choices without placing undue burdens on productive sectors that contribute significantly to economic development.
The chamber therefore called for wider consultations with stakeholders before any final decision was taken on the bill currently before the National Assembly.
ACCI also recommended adopting a sugar-content-based taxation model, which it said would encourage manufacturers to reformulate products and reduce sugar levels progressively.
Obegolu further urged government to ensure transparent utilisation of revenues generated from beverage taxes while supporting healthier product development and safeguarding jobs, investments and economic growth.(NAN)(www.nannews.ng)
Edited by Abiemwense Moru
