The Director of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, has urged the Senate Committee on Finance to discontinue its proposal to increase excise duty on non-alcoholic beverages, warning that the move is counterproductive and potentially harmful to national economic recovery.
Yusuf, said in a statement that the proposal arrived at a time when manufacturers, Small and Medium-sized Enterprises, and retailers were battling macroeconomic pressures, including inflation, high energy costs, foreign exchange volatility, and weakened consumer demand.
According to him, the proposal to further increase excise duty on non-alcoholic beverages is economically disruptive, socially harmful, procedurally flawed, and inconsistent with Nigeria’s broader development and industrial policy objectives.
Yusuf noted that the beverage industry has absorbed multiple shocks in the last three years, with prices rising by about 200 to 300 per cent due to inflation and earlier excise adjustments.
He warned that many operators were already struggling to stay afloat, saying, “Introducing a new round of excise increases under these conditions will weaken operating capacity, reduce output, erode purchasing power, and lead to avoidable job losses.”
Yusuf added that another wave of factory closures or layoffs would hurt the fragile economic recovery. “The economy cannot afford avoidable disruptions at this delicate moment,” he stressed.
The CPPE director further noted that higher taxes would push retail prices up and worsen the cost-of-living crisis for households.
He cautioned that the measure could threaten thousands of jobs across manufacturing, supply chain, logistics, retail, and the informal sector.
“Contrary to assumptions that higher excise rates translate to higher revenue, the opposite is more likely. When consumption declines due to price increases, revenue falls,” he added.
GIK/APA