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Ikechi Nzeako
The Lagos Chamber of Commerce and Industry has stated that enacting the Sugar-Sweetened Beverage (SSB) Tax Bill will impose economic additional taxes on an already challenged manufacturing sector.
Reacting to the passage of the SSB by the Senate, Dr. Chinyere Almona, Director-General of the chamber, said that the organization acknowledges the government’s objective of addressing public health concerns associated with excessive sugar consumption and recognizes the importance of promoting healthier lifestyles and reducing the incidence of non-communicable diseases.
However, it argued that public health interventions must be carefully designed to achieve health outcomes without imposing disproportionate costs on businesses, consumers, and the broader economy.
It stated that at a time when manufacturers are grappling with high energy costs, exchange rate volatility, elevated interest rates, logistics challenges, multiple taxation, and weak consumer purchasing power, the introduction of additional taxes on the beverage industry risks further increasing production costs.
It added that these higher costs are likely to be passed on to consumers through higher prices, worsening inflationary pressures, and reduced demand for locally manufactured products.
According to Almona, the chamber is particularly concerned that the tax could have unintended consequences across the industrial value chain, adding that “the beverage industry supports a wide network of suppliers, distributors, transport operators, retailers, farmers, and service providers. Any decline in production volumes resulting from increased taxation may negatively affect these interconnected sectors, leading to reduced investments, lower capacity utilization, and potential job losses.”
She said that there is need for a “balanced approach that combines public health education, voluntary industry reformulation initiatives, improved product labeling, consumer awareness campaigns, and broader stakeholder engagement. Such measures can help achieve health objectives while minimizing adverse effects on industrial growth and employment. Other factors in our consideration are.”
She stressed the need to “design sugar-sweetened beverage taxes that will be part of a broader public health strategy and carefully calibrated to avoid excessive disruption to industry and employment”.
The director-general said that the chamber wants to see manufacturers reformulate their products over a transition period rather than raise prices due to SSB taxes, adding that reformulation-focused tax may be more effective than a revenue-focused tax.
The chamber stated that incentivizing lower sugar content can achieve health objectives while preserving industrial activity.
