The President, Chattered Institute of Financial and Investment Analyst (CIFIAN) Prof. Godfrey Omojefe, has urged the Federal Government to harmonise its Sugar-Sweetened Beverage (SSB) tax policy with the nation’s industrial development goals and public health objectives.

Omeje spoke at a recent policy workshop in Lagos, with the theme, ‘Understanding the Impact of SSB Taxation on Nigeria’s Sugar Economy: Supply, Demand, and the Policy Disconnect.’

He recalled the N10 per litre excise duty introduced in 2022 had already produced significant economic consequences.

He made reference to the National Sugar Development Council data that revealed sugar consumption declined by 16 per cent in 2023, while domestic production fell by 35 per cent from 46,479 metric tonnes in 2022 to 30,053 metric tonnes in 2023.

He said: “These drops are linked to a tough economic environment but that tax was introduced with good intentions.”

He insisted its design lacks holistic framework, which may adversely affect local production and investment.

He faulted recent proposals by Corporate Accountability and Public Participation Africa, to raise excise duty from N10 to N130 per litre.

He said this could, “push retail prices up by between 20 per cent and 50 per cent, trigger a sharp drop in demand, reduce aggregate beverage production, and weaken the Nigerian Sugar Master Plan.”

Specifically, the Master Plan aims to achieve self-sufficiency in sugar production, reduce imports, create jobs, and save foreign exchange.

In conclusion, he expressed concern that punitive taxes on SSBs could discourage sugarcane cultivation.