The National Union of Food, Beverage and Tobacco Employees (NUFBTE) has urged the House of Representatives to reject the Customs, Excise Tariffs, Etc. (Consolidation) Amendment Bill, 2025, warning that it could worsen the economic challenges facing Nigerian workers and manufacturers.

The union made the appeal in an open letter addressed to the Speaker of the House of Representatives, Abbas Tajudeen. The letter was co-signed by NUFBTE President, Comrade Garba Dankama.

The union warned that passing the bill at a time when businesses and households are struggling with the effects of ongoing economic reforms would impose an additional financial burden on the country.

The proposed bill seeks to replace the existing specific tax of ₦10 per litre on soft drinks with a percentage-based levy calculated on the retail price of the products.

Dankama said Nigerian workers and manufacturers could not withstand another poorly designed tax, warning that the proposal could worsen the difficult operating conditions in the food, beverage and tobacco industries.

He explained that the manufacturing sector was already facing serious challenges, including high borrowing costs, rising energy and transportation expenses, limited access to foreign exchange and declining consumer purchasing power.

According to him, several manufacturers have reduced production or shut down some operations, raising concerns about further job losses if the proposed tax is approved.

Dankama noted that the food, beverage and tobacco sector supports hundreds of thousands of jobs across farming, transportation, distribution and retail, warning that additional taxes could trigger more factory closures, retrenchments and disruptions across the supply chain.

He expressed confidence that the leadership of the House of Representatives would protect workers' interests while helping the manufacturing sector navigate the current economic difficulties.

The NUFBTE president said workers had already been affected by the removal of fuel subsidies and foreign exchange reforms, while their incomes had failed to keep pace with rising costs of transportation, food, housing and other essential needs.

“The sector needs room to adjust to the current economic realities and remain sustainable. An aggressive percentage-based tax at this time could place a serious strain on the industry, with consequences for investment, jobs, and livelihoods,” he said.

Dankama also argued that a percentage-based levy could increase pressure on manufacturers whose production costs are vulnerable to fluctuations in global commodity prices and geopolitical developments.

He warned that higher taxes could lead to increased product prices, reduced consumer demand and further factory closures.

The union president also questioned the public health benefits of the proposed tax, arguing that products in the category account for only five per cent of national sugar intake.

“Taxing a product category that contributes only 5% of national sugar intake will not yield real public health benefits. It will simply push consumers toward cheaper, unregulated alternatives, while destroying the livelihoods of over a million Nigerians who have already borne the brunt of recent economic reforms,” he added.

NUFBTE Urges Reps to Reject Proposed Tax Hike on Soft Drinks

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