CPPE Raises Alarm Over Proposed Sugar Tax, Warns of Job Losses and Economic Strain

Favour Ojo

The Centre for the Promotion of Private Enterprise (CPPE) has sounded a warning bell over a proposed sugar tax on sugar-sweetened beverages in Nigeria, cautioning that it could have far-reaching consequences for the economy. The organisation argues that the tax is ill-timed, given the country’s fragile economic recovery, and would disproportionately affect the manufacturing sector.

The manufacturing sector is already grappling with high energy costs, logistics challenges, and exchange rate volatility, making it vulnerable to additional taxation. The food and beverage industry, which contributes about 40% of total manufacturing output, is particularly at risk. According to Dr. Muda Yusuf, CPPE’s Chief Executive Officer, the proposed tax would not only lead to job losses but also reduce investment and exacerbate economic strain.

Rather than imposing additional taxes on an already burdened sector, Dr. Yusuf suggests alternative approaches, such as public health education, promoting healthier lifestyles, and improving access to preventive healthcare. These measures, he believes, would be more effective in addressing health concerns without jeopardising the economy.