MAN, NECA Kick As Senate Mulls Higher Duty On Sugar Products

The Manufacturers Association of Nigeria (MAN), the Nigerian Employers Consultative Association (NECA), and the Federal Ministry of Finance have kicked against a proposed increase in excise duty on sugar-sweetened products.

Stakeholders at a public hearing at the Senate wing on Thursday took divergent positions on moves to increase duty on carbonated sugar-sweetened beverages (SSB) through amendment of extant law.

Specifically, the bill seeks to increase the current SSB excise tax from ₦10 per litre to at least 20 per cent of the retail price of a given product, in line with the recommendation of the World Health Organisation (WHO).

The Senate Committees on Finance and Customs, which organised the hearing, said the proposed amendment seeks to discourage the consumption of SSB among Nigerians.

But MAN, represented by one of its directors, Mr Adeyemi Folorunsho, called for restraint, warning that the proposed amendment might lead to job losses in the manufacturing sector.

Folorunsho debunked the claim that consumption of SSB by Nigerians was mainly responsible for rising cases of diabetes, obesity and other related diseases.

“Contrary to this erroneous belief, Nigeria has the lowest rate of sugar consumption in the world, which is 8.3 million kilogrammes, as against the 22.1 million kilogrammes that is supposed to be,” Folorunsho said.

He advised the two Senate committees and other stakeholders to adopt a win – win approach to the proposed amendment.

But the Federal Ministry of Health, which was represented by the Minister, Prof Ali Pate, backed the proposed amendment bill, saying it represents a progressive, evidence-based approach to public health financing.

The minister said, “We commend the Senate for proposing a bill that seeks to increase the excise tax on sugar-sweetened beverages (SSBs) and earmark part of the revenue for health promotion.

“This measure demonstrates strong political will, aligns fiscal policy with public health goals, and provides sustainable financing for prevention programmes—critical steps toward achieving universal health coverage.”

According to him, revenue expected to be generated from the the excise duty hike, would be ploughed back into public health programmes, targeting the prevention and control of diet-related non-communicable diseases.

“If we fail to act appropriately now, in 10 to 20 years, we will face a far higher burden of diabetes, hypertension, and other complications that will place even greater demands on our fiscal resources for treatment. Prevention is far more cost-effective than cure.”

Representatives of the Nigeria Cancer Society, Diabetes Association of Nigeria and others alo supported the proposed bill.

In his closing remarks, the Senate Finance committee chairman, Senator Sani Musa, assured all the stakeholders that legislation that would be presented to Nigerians at the end of the day, shall be fair, transparent and people oriented.