ThinkBusiness Africa Warns Against Sugary Drink Tax Hike

ThinkBusiness Africa, a Lagos-based policy and investor-relations firm, has cautioned against a significant tax increase on sugar-sweetened beverages in Nigeria, as proposed in an amendment to the Customs, Excise Tariff (Consolidation) Act. This amendment, passed by the Senate on June 4, 2026, replaces the existing ₦10-per-litre excise duty with a levy linked to retail prices, determined by the Minister of Finance.

The firm’s report, titled ‘Nigeria’s CETA Bill, Fiscal Policy, and Health Outcomes,’ argues that while diabetes, obesity, and hypertension are serious issues, the evidence supporting sugary drink taxes is complex and should be scrutinized. It highlights that the proposed tax could increase costs across the beverage value chain, affecting approximately 1.5 million jobs.

The report also notes a decline in sugar consumption and production in Nigeria, attributing these trends to broader economic pressures rather than solely the existing levy. ThinkBusiness Africa urges policymakers to consider both immediate and long-term health outcomes of such taxation.