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Grievances In Nigeria As Senate Moves To Hike Tax On Soft Drinks

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A sweeping wave of criticism has trailed the Nigerian Senate’s plan to increase excise duty on non-alcoholic beverages, as economists and Nigerians have kicked against the proposal.

The controversy follows the Senate Committee on Finance’s push to amend the Sugar-Sweetened Beverage (SSB) tax— currently a fixed N10 duty per liter under Section 21(3) of the Customs and Excise Tariffs (Consolidation) Act—into a percentage-based levy on the retail price. The amendment bill, sponsored by Senator Ipalibo Harry Banigo, proposes that revenues from the higher tax be channeled into the health sector.

But there has been intense pushback against the proposal.

The Centre for the Promotion of Private Enterprise had on Monday urged the Senate to discontinue the plan to increase excise duty on non-alcoholic beverages on the ground that it would lead to the shutdown of factories, a fresh hike in prices, and massive layoffs.

Similarly, in an interview with DAILY POST on Monday, Mazi Okechukwu Unegbu, a former president of the Chartered Institute of Bankers and a university don, Prof. Godwin Oyedokun, like CPPE, condemned the move to increase excise duty on non-alcoholic beverages.

FG should not kill Nigerians with taxes — Unegbu

On his part, Unegbu lamented that Nigerians are already battling with multiple taxation and hardship.

He said that any plan to increase tax should be suspended by the Nigerian government.

“They should not kill Nigerians with taxes all over the place. They should be able to be reasonable in terms of their proposals.

“So for now, I will recommend that the government should not increase any tax for now,” he said.

Excise duty hike will deepen hardship – Prof. Oyedokun

Economist and public finance expert, Prof. Godwin Oyedokun has cautioned the Federal Government against the proposed plan, warning that the move could worsen inflation, cripple small businesses, and undermine already fragile household incomes.

In a statement issued on Tuesday, Oyedokun said the proposal has triggered widespread concern because it targets products consumed daily by millions of Nigerians—including soft drinks, flavored beverages, energy drinks, and other low-cost bottled drinks that often serve as alternatives for families struggling with rising food prices.

He noted that the economic implications of the proposed tax are far-reaching and risk outweighing the government’s expected revenue gains.

According to him, the first impact would be an immediate rise in retail prices, as manufacturers typically transfer additional tax burdens to consumers.

“Households already battling high inflation will feel the squeeze, especially low-income earners, students, artisans, and families with children,” Oyedokun said.

He warned that small businesses—including roadside retailers, restaurants, event vendors, and neighborhood shops—would be among the worst hit, as higher prices could reduce demand and weaken daily earnings.

“For many micro and small traders, beverage sales are a key part of their cash flow. A drop in consumption could push some out of business,” he added.

The economist further expressed concern about potential job losses in the beverage value chain, which employs thousands of workers from factories to distribution networks.

Reduced sales, he said, could force manufacturers to cut production volumes and labor costs.

Oyedokun also questioned the premise that the tax hike would significantly boost government revenue.

He argued that consumers often respond to price increases by shifting to cheaper options, reducing consumption, or patronizing informal and unregulated markets—all of which could undermine projected fiscal gains.

He described the timing of the proposal as “misaligned with current economic realities,” noting that Nigerians are already grappling with record inflation, high transport costs, rising energy bills, and shrinking purchasing power.

“At a time when households need relief, another consumption tax feels counterproductive,” he said.

The economist also highlighted concerns over policy inconsistency, recalling that the Federal Government suspended similar excise duties in 2023 following warnings from manufacturers and labor groups.

A fresh attempt, he said, sends negative signals to investors who rely on stable policies to plan production and capital investments.

Oyedokun urged the government to consider alternative fiscal measures, such as expanding the tax net, improving tax administration, reducing leakages, and supporting sectors that generate large-scale employment.

“In summary, while the goal of increasing revenue is understandable, the social and economic costs of this excise duty hike appear far heavier than the benefits.

“Consumers, SMEs, and workers need breathing space in an economy already stretched thin,” he said.

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BREAKING: Blessing CEO Faces Fresh EFCC Charge Over Alleged N69.1m fraud

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The Lagos Zonal Directorate of the Economic and Financial Crimes Commission, EFCC, on Tuesday, again arraigned a social media influencer and self-acclaimed relationship therapist, Okoro Blessing Nkiruka, also known as Blessing CEO, for an alleged N69.1 million fraud.

Blessing CEO was arraigned before Justice R.A. Oshodi of the Special Offences Court sitting in Ikeja, Lagos on a two-count charge bordering on obtaining money by false pretence and stealing to the tune of N69,150,000.

At the commencement of the proceedings, the prosecution counsel, C. C. Okezie, urged the court to proceed with the arraignment, arguing that the defendant had been duly served with the charge.

However, the defence counsel, Nkama Nneka, informed the court that service of the charge had only recently been effected.

In his ruling, Justice Oshodi held that the arraignment should proceed in accordance with the law, hence the charges were subsequently read to the defendant.

It will be recalled that Blessing CEO had been arraigned by the EFCC on 15th May 2026 over an alleged N36 million fraud.

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BREAKING NEWS: Pres. Tinubu Commissions OSEX Main Carriageway, Wows

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President Bola Ahmed Tinubu on Tuesday commissioned the main carriageways of the Outer Southern Expressway (OSEX) from Ring Road I Junction to Ring Road II Junction in Abuja, declaring that the era of abandoned public projects has ended.

Represented by Senate President Godswill Akpabio, the President said the completion of the strategic road project underscored his administration’s commitment to delivering critical infrastructure capable of stimulating economic growth, easing transportation and improving the quality of life of Nigerians.

“We don’t start projects to abandon them. The era of uncompleted projects in Nigeria is fading away. We finish what we start, and even finish the ones we did not start,” Tinubu said at the inauguration ceremony.

Describing infrastructure as the backbone of economic development, the President said the newly completed road would unlock new opportunities for businesses and residents across the Federal Capital Territory (FCT).

“What we are doing here today goes far beyond laying asphalt or mixing concrete. We are paving the way for a brighter future. Infrastructure is the very artery of economic growth. If you want to unlock the potential of a city, if you want to create jobs, if you want to make life easier for the market woman, the corporate worker and the industrialist, you build roads,” he stated.

Tinubu noted that his administration had steadily advanced the OSEX project, beginning with the commissioning of the first phase from the Villa Roundabout to Ring Road I Junction in 2024 and the inauguration of the 15-kilometre left-hand service carriageway in 2025.

According to him, the completion of the main carriageway from Ring Road I to Ring Road II represents another milestone in the ongoing transformation of Abuja.

The President also commended the Minister of the Federal Capital Territory, Barr. Nyesom Wike, for what he described as focused and result-oriented leadership.

“The structural transformation we are witnessing in the Federal Capital Territory is a testament to what happens when you have focus, vision and dynamic leadership. I want to commend the Honourable Minister of the FCT, Nyesom Wike, and his entire team for their commitment and dogged determination in reshaping the FCT for long-term prosperity,” he said.

Addressing Wike directly, Tinubu added: “You have shown that public service is about performance, not excuses. You have kept the contractors on their toes and you have kept our vision alive. This is the spirit of the Renewed Hope Agenda delivering quality results for the Nigerian people on time.”

He said the road would reduce traffic congestion, lower transportation costs and expand Abuja’s economic footprint by improving connectivity between Apo and Wasa districts.

Earlier, Minister of the FCT, Nyesom Wike attributed the successful completion of the project to the determination of the administration and the commitment of the contractor, CGC Nigeria Limited, to deliver within the agreed timeline.

The minister disclosed that when the contract was awarded in late 2025, he had sought assurances from the contractor that the project could be completed in time for President Tinubu’s third anniversary in office.

“I asked them a simple question: can you deliver this project? I told them I wanted it ready for Mr. President’s third anniversary. They said yes. I asked again because I was not comfortable considering the scope of the work, the dual carriageway, culverts and bridges. They assured me they would deliver, and today they have kept their promise,” Wike said.

He revealed that he personally inspected the project site more than ten times to monitor progress and ensure compliance with agreed timelines.

“This means that nothing is impossible if we are determined and committed to achieving results. With proper understanding between government and contractors, and with government fulfilling its obligations, we can achieve a lot,” he added.

Wike said the completion of the road was consistent with the Tinubu administration’s policy of ensuring continuity in governance and completing projects inherited from previous administrations.

“We did say every project we inherited, we are going to continue with it and finish it. That’s the essence of leadership. One of the criteria of good leadership is continuity of projects initiated by other administrations, not just projects initiated by you,” he said.

According to him, about 80 per cent of projects completed by the FCT Administration since 2023 were inherited from previous governments.

“Some people would have said there is no need for that, let us start our own projects. But Mr. President understands that these projects are funded with public resources and government is a continuum. We cannot abandon projects littered across the FCT,” he said.

The minister also disclosed that infrastructure had been fully provided at the relocation site for traders and artisans operating at the Apo Mechanic Village, fulfilling a longstanding government promise to move the informal sector to a more suitable environment.

Responding to critics who claimed little is being achieved, Wike pointed to ongoing and completed projects across Abuja’s satellite towns, including roads in Kwali, Karu and Kubwa, as well as water projects in rural communities.

“Sometimes it baffles me when people say nothing is happening in this country. Are we doing all these things in heaven or here on earth where people are living?” he asked.

He expressed confidence that residents of the FCT would ultimately appreciate the administration’s efforts and support President Tinubu for fulfilling promises made to them.

In her remarks, the Minister of State for the FCT, Dr. Mariya Mahmoud, described the OSEX project as a significant milestone in the ongoing transformation of the nation’s capital.

She commended President Tinubu for his unwavering commitment to infrastructure development, noting that strategic investments in roads, bridges and other critical projects were translating government policies into tangible benefits for citizens.

Mahmoud also praised Wike’s leadership and commitment to delivering infrastructure that is reshaping Abuja and improving the quality of life of residents.

The newly commissioned road is expected to enhance mobility between key districts of the capital city, support urban expansion and strengthen Abuja’s transportation network as part of the broader modernisation agenda of the FCT Administration.

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