The National Union of Food, Beverage and Tobacco Employees (NUFBTE) has urged Nigeria's House of Representatives to reject the Customs, Excise Tariffs Amendment Bill, 2025. The union warned that the bill's passage would add pressure on workers and the manufacturing sector. According to NUFBTE, Nigerian workers have already felt the impact of fuel subsidy removal and foreign exchange reforms. Rising costs of transportation, food, housing, and other essentials continue to erode their incomes.
The proposed bill seeks to replace the existing N10-per-litre specific tax on soft drinks with a percentage-based levy tied to the retail price of the products. NUFBTE President Comrade Garba Dankama stated that this tax could weaken production, investment, and employment in the sector. The sector is already struggling with high operating costs and declining capacity utilisation. Dankama noted that capacity utilisation across manufacturing has declined sharply due to high borrowing costs, rising energy and logistics expenses, and weakened consumer purchasing power.
The beverage sector supports hundreds of thousands of jobs across farming, haulage, distribution, and retail. Dankama warned that another tax increase could trigger further factory closures and job losses. He stated that workers cannot absorb another financial burden after recent economic reforms have increased the cost of living and reduced their purchasing power. The union believes the sector needs room to adjust to current economic realities and remain sustainable.
An aggressive percentage-based tax could strain the industry, affecting investment, jobs, and livelihoods. Dankama argued that a percentage-based levy would expose manufacturers to greater cost pressures amid global commodity price volatility and geopolitical uncertainty. Higher production costs would translate into higher prices, weaker consumer demand, and further factory closures. This would ultimately impact the livelihoods of over a million Nigerians who have already borne the brunt of recent economic reforms.
The union also argued that taxing a product category contributing only 5% to national sugar intake would not yield significant public health benefits. Instead, it would push consumers toward cheaper, unregulated alternatives and destroy livelihoods. NUFBTE urged the House leadership to withhold concurrence on the bill and protect workers and manufacturers from an additional tax burden.
The manufacturing sector is already under severe pressure, and the union expressed confidence that the House would consider the impact of the proposed legislation on workers, investment, and sustainability. The union's concerns are based on the potential consequences of the bill on the industry and the economy. The House of Representatives will need to weigh these concerns when making a decision.
The rejection of the bill is crucial to preventing further job losses and economic strain on the manufacturing sector. The union's president, Comrade Garba Dankama, emphasized the need for the government to protect workers and manufacturers from additional tax burdens. The outcome of the bill's consideration will have significant implications for Nigeria's manufacturing sector and economy.
Key points
- The National Union of Food, Beverage and Tobacco Employees urges Nigeria's parliament to reject a bill that would introduce a percentage-based levy on soft drinks.
- The proposed bill could lead to job losses and further strain on the manufacturing sector.
- The union argues that the tax would not yield significant public health benefits and would instead harm the livelihoods of over a million Nigerians.
