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Grievances In Nigeria As Senate Moves To Hike Tax On Soft Drinks
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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POLITICS: Wike-led PDP Faction Takes Over Party Secretariat In Oyo
Members of Peoples Democratic Party, PDP, loyal to the Minister of Federal Capital Territory, FCT, Nyesom Wike, have taken over the secretariat of the party in Oyo State.
The secretariat, located in the Molete area of Ibadan, was in the custody of the faction loyal to Governor Seyi Makinde of the state until Thursday when the members loyal to Wike took over the premises.
DAILY POST gathered that the PDP members stormed the secretariat on Thursday and occupied the premises with hundreds of members of the party in attendance.
PDP chairman in the state, Professor Abdulrahman Akinoso, confirmed the development to DAILY POST.
Akinoso in a telephone conversation with DAILY POST on Thursday, insisted that the real owners have taken over the premises.
He said, “It is true. It is not faction. It is PDP. We have taken over the premises. It was in the morning. We were there in the morning. We just left the premises. We are now in control. We have taken over the premises.” .…For more, Complete your reading.
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POLITICS: Foreign Recognition Won’t Secure Re-election – ADC Tells Tinubu
The African Democratic Congress (ADC) has told President Bola Tinubu that foreign recognition will not secure him another term in office, insisting that Nigerians will judge his administration by its performance, not by diplomatic gestures from other world leaders.
In a statement issued on Thursday by its National Publicity Secretary, Bolaji Abdullahi, the opposition party reacted to the Presidency’s celebration of a purported letter from United States President Donald Trump to Tinubu.
The ADC said presenting the letter as an endorsement of Tinubu’s administration was misleading, stressing that diplomatic correspondence between world leaders is a normal part of international relations.
“The Presidency’s attempt to present President Donald Trump’s letter to President Bola Ahmed Tinubu as though it were a referendum on the state of the nation is not correct,” the party said.
According to the ADC, countries cooperate, leaders exchange views and letters regularly, adding that such communication does not amount to an endorsement of a government’s performance.
The party accused the Tinubu administration of being desperate for international validation instead of focusing on solving Nigeria’s challenges.
“It is apparent that this administration is desperate to seize upon any gesture of international recognition as proof of success at home,” the statement said.
The ADC maintained that “a letter from a foreign president, however well-intentioned, cannot substitute for the verdict of the Nigerian people.”
It added that the true measure of any government is not what foreign leaders say about it, but what citizens experience daily.
The opposition party argued that Trump’s letter had not changed the reality facing millions of Nigerians, especially those affected by insecurity.
“For the millions of Nigerians still living with the consequences of this government’s failures, President Trump’s communication changes nothing. It did not say that insecurity has been overcome or that Nigerians can once again travel freely, farm safely and sleep without fear,” the party stated.
The ADC also pointed to the continued captivity of hundreds of women and children in parts of Borno State and Kaiama in Kwara State, while many communities in Benue and other parts of the country still live in constant fear because of insecurity.
The party further noted that, despite the Presidency’s celebration of the letter, the United States Department of State has not changed its travel advisory for Nigeria.
According to the ADC, several Nigerian states remain under Level 3 and Level 4 travel advisories, with American citizens still being urged to reconsider or avoid travel because of crime, terrorism, kidnapping and civil unrest.
“We therefore wonder how correspondence from a government that designates several Nigerian states as ‘Do Not Travel’ areas can be regarded as an endorsement,” the party said.
It argued that the travel advisory shows the international assessment of Nigeria’s security situation remains different from the image the Presidency is trying to project.
The ADC said Nigerians are more concerned about their safety than diplomatic exchanges between presidents.
“The daily reality of Nigerians is shaped not by diplomatic correspondence, but by the guarantee that they can go about their lives without falling victim to violent crime or terrorism,” it said.
The party stressed that Trump’s letter was simply communication between two presidents and “does not amount to an endorsement of this government’s overall performance.”
It urged the Tinubu administration to focus less on celebrating diplomatic courtesies and more on delivering measurable improvements in the lives of Nigerians.
“Ultimately, Nigerians will not judge this government by the letters it receives from foreign capitals. They will judge it by whether .…For more, Complete your reading.
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