The Centre for the Promotion of Private Enterprise (CPPE) has asked the Nigerian Senate to discontinue the proposal to increase excise duty on non-alcoholic beverages.

The Chief Executive Officer of CPPE disclosed this in a statement on Monday.

This follows a recent proposal by the Senate Committee on Finance to amend the Customs and Excise Act to increase excise duty on non-alcoholic beverages.

Reacting, CPPE said the Nigerian economy cannot afford another wave of factory closures or layoffs resulting from increased taxation on manufacturers.

According to the economic think tank, the move would translate to higher retail prices on beverages, could lead to massive job cuts, and would put more pressure on small businesses in Nigeria.

“The proposed increase in excise duty on non-alcoholic beverages should be discontinued.

“The current economic realities render the proposal counterproductive and potentially harmful to national economic recovery and the welfare of the people.

“Excise policy rate-setting should remain an administrative function, not legislated into the Customs and Excise Act.

“Fiscal tools must remain flexible and responsive to prevailing macroeconomic conditions.

“Government should prioritize broader public health strategies rather than using taxation as the primary tool. Nutrition education and awareness campaigns are more effective and less socially disruptive.

“Stronger government–industry collaboration is essential. Manufacturers are willing partners in promoting health-conscious consumer choices, including the production of low-sugar and zero-sugar variants,” the Centre said.

CPPE called on the Senate Committee on Finance to reconsider the proposal in light of its potential economic, social, and institutional consequences.

“To reaffirm the role of the executive in setting excise duty rates and ensuring coherence across fiscal policy domains.

“The Federal Ministry of Health should work collaboratively with manufacturers, civil society, and nutrition experts on non-tax health interventions.

“To commit to responsible advertising, voluntary sugar reduction programs, and consumer awareness campaigns.

“Nigeria is currently navigating a fragile economic recovery pathway. The manufacturing sector, a vital engine of employment and growth, needs policies that support stability, competitiveness, and resilience.

“The proposed increase in excise duty on non-alcoholic beverages threatens to undermine these objectives, jeopardizing livelihoods, welfare, investment, and long-term industrial development.

“In the interest of economic stability, job protection, and sound public health strategy, we strongly urge the withdrawal of the proposed amendment.

“A collaborative, evidence-based, and economically sensitive approach remains the best path forward for both public health and Nigeria’s manufacturing competitiveness,” CPPE stated.