In an open letter to Speaker of the House of Representatives Abbas Tajudeen, the union’s president, Garba Dankama, argued that the proposed Customs, Excise Tariffs, Etc. (Consolidation) Amendment Bill, 2025, would introduce additional financial pressure on businesses and workers already struggling with the effects of economic reforms.

The bill seeks to replace the existing fixed excise duty of ₦10 per litre on sugar-sweetened beverages with a levy calculated as a percentage of their retail price. The Senate passed the proposed amendment in June 2026, and it was subsequently sent to the House of Representatives for concurrence.

Dankama said the timing of the proposed change was a major concern, given manufacturers’ exposure to high borrowing costs, rising energy and transportation expenses, foreign exchange challenges and reduced consumer purchasing power.

According to the union, many manufacturers are already under pressure, with some scaling back production or suspending operations. It warned that a higher tax burden could worsen the situation, potentially leading to additional factory closures, job losses and disruptions across supply chains.

The union also highlighted the wider employment impact of the food, beverage and tobacco industries, which support livelihoods in farming, transportation, distribution, retail and other related businesses.

Dankama maintained that workers were already contending with higher living costs following fuel subsidy removal and foreign exchange reforms. He argued that wages had not kept pace with increases in the prices of food, housing, transportation and other essential needs.

NUFBTE warned that a percentage-based levy could push up production costs and retail prices, potentially reducing demand for affected products. It urged lawmakers to consider the implications for investment, industrial activity and employment before approving the measure.

The union also questioned the public health benefits of the proposed tax, arguing that consumers could switch to cheaper, less-regulated alternatives if prices rise. However, this is the union’s position; the overall public health impact would depend on factors including the final tax design, consumer behaviour and how any revenue is used.

Supporters of the proposed amendment have argued that a retail-price-based levy could strengthen efforts to discourage excessive sugar consumption and generate additional funding for health promotion, disease prevention and healthcare services for vulnerable Nigerians.

The debate therefore centres on how to balance public health objectives and potential government revenue with the need to protect jobs, manufacturing investment and consumers’ purchasing power.

NUFBTE appealed to the House of Representatives to withhold concurrence on the bill, saying the manufacturing sector should be given room to recover from current economic pressures before another tax change is introduced.

Reporting by TalkNaija Media