Sugar Tax: MAN, NECA Commend FG, Call for its Permanent Suspension 

Dike Onwuamaeze

The Manufacturers Association of Nigeria (MAN) and the Nigeria Employers Consultative Association (NECA) has commended the move by the federal government to temporarily suspend the N10 per litre sugar tax on carbonated sweetened non-alcoholic beverages.

They also called for permanent suspension of the tax because nearly all manufacturers in the non-alcoholic sector recorded losses in 2023.

The Minister of Finance and the Coordinating Minister for Economy, Mr. Wale Edun, had recently dislcosed that the federal government is considering a temporary suspension of the sugar tax for six months as part of the implementation of its Economic Stabilisation Plan (ESP).

He said: “This measure aims to help beverage companies navigate the current economic difficulties without going under. We support your need for revenue, but we must find a balance. The increase in foreign exchange rates is being passed on to consumers. While the official exchange rate was artificially pegged, products are often priced at the parallel market rate, meaning companies do not pass on the actual exchange rate to customers.”

Commenting on the proposed suspension, the Director General of NECA, Mr. Adewale-Smatt Oyerinde, commended the federal government for the gesture, but urged them “to withdraw the tax permanently rather than just a suspension for a mere six months.”

Oyerinde said, “Almost all soft sweetened beverages (SSBs) companies made loss in the 2023 accounting period, including those that have always made profit.”  

Similarly, the Director General of MAN, Mr. Segun Ajayi-Kadir, described the proposed suspension of the sugar tax as a welcome development for the affected industrial sector.

He said: “The initial proposal threatened to exacerbate the already burdensome tax landscape for manufacturers, who are struggling under a multitude of levies. These financial constraints stifle growth, limit investment, and ultimately hinder the expansion of domestic manufacturing, a crucial driver of national development.

“The Manufacturers Association of Nigeria applauds this potential shift in policy. We advocate for a more comprehensive approach that prioritizes a reduction and harmonisation of existing taxes.”