Private Sector Urges NASS To Withdraw Customs Tariff Amendment Bill
By FIDELUS ZWANSON
NIGERIA’S Organised Private Sector (OPS) has asked the National Assembly to withdraw the proposed amendment to the Customs, Excise and Tariff Bill, warning that the draft could harm key non-oil industries and contradict the Federal Government’s fiscal reform agenda.
Presenting its position at a public hearing on 27 November, the OPS — comprising NACCIMA, MAN, NECA, NASME and NASSI — said the bill contains “mathematical, legal and administrative contradictions” and risks worsening Nigeria’s fragmented excise system. The group noted that new levies are often introduced without assessing their cumulative impact on production, jobs, exports, inflation and investment.
The OPS argued that the amendment could destabilise the non-alcoholic drinks sector, which supports 1.5 million jobs and contributes up to 45% of gross revenues as taxes. It warned that higher levies would raise operating costs, shrink capacity utilisation, increase retail prices, push consumers toward informal markets and weaken VAT and CIT receipts, ultimately affecting FAAC allocations.
While acknowledging that the beverage industry supports public health goals, the OPS said excise policies must be holistic and predictable, aligning with President Bola Tinubu’s tax reform priorities. It criticised lawmakers for advancing the bill without sufficient engagement with the Ministry of Finance, the Fiscal Policy and Tax Reform Committee, FAAC and other key stakeholders.
The group added that steep or ambiguous taxes on sugar-sweetened beverages in low-income economies often lead to job losses, MSME contraction, reduced government revenue and minimal health gains — risks Nigeria could face if the amendment passes unchanged.
Despite its concerns, the OPS expressed readiness to work with legislators and fiscal authorities to develop a more coherent excise framework.
The bill’s sponsor, Senator Ipalibo Harry Banigo, defended the proposal, saying it does not introduce a new tax but seeks to channel existing SSB revenue into primary healthcare and preventive programmes.
