Workers’ union urges Reps to suspend bill proposing new soft drinks levy

The National Union of Food, Beverage and Tobacco Employees (NUFBTE) has urged the House of Representatives to suspend passage of a bill proposing a percentage-based levy on soft drinks.

According to TheCable, the union warned that the proposed Customs, Excise Tariffs Amendment Bill 2025 could worsen unemployment and threaten Nigeria’s manufacturing sector.

NUFBTE President Garba Dankama, in a letter to Speaker Tajudeen Abbas, opposed replacing the existing ₦10-per-litre tax with a levy calculated as a percentage of retail prices.

He cited rising production costs, declining consumer purchasing power and factory closures as major challenges facing manufacturers.

“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 warned that additional taxation could trigger retrenchments, higher prices and further factory shutdowns nationwide.