MAN Warns Tariff Amendment Bill Could Trigger ₦2.8 Trillion Loss, Urges Balanced Tax Policy Approach

MAN Warns Tariff Amendment Bill Could Trigger ₦2.8 Trillion Loss, Urges Balanced Tax Policy Approach The Manufacturers Association of Nigeria MAN has warned that a proposed tariff amendment bill, linked to sugar-related taxation reforms, could lead to losses of up to ₦2.8 trillion for the Nigerian economy if not carefully reviewed, urging the government to adopt a more balanced and evidence-based taxation framework. The association raised concerns that the bill, which seeks to revise excise duties within the sugar-sweetened beverage SSB value chain, may significantly increase production costs, weaken industrial competitiveness and reduce overall output in the manufacturing sector. According to MAN, the proposed amendment could have wide-ranging ripple effects across the economy, particularly in sectors linked to agriculture, packaging, logistics, retail distribution and hospitality, all of which depend heavily on the food and beverage industry for sustained activity. Industry stakeholders argue that the food and beverage subsector remains one of Nigeria’s most critical manufacturing pillars, contributing significantly to industrial output, employment generation and value chain development. They warned that additional fiscal pressures could disrupt operations and discourage investment at a time when manufacturers are already grappling with high energy costs, foreign exchange volatility, inflationary pressures and multiple taxation burdens. MAN further cautioned that the proposed changes could reduce production volumes, weaken capacity utilisation and potentially lead to job losses across the manufacturing ecosystem if implemented without adequate stakeholder consultation or economic impact assessment.

The association urged lawmakers to reconsider the structure of the proposed amendment, recommending a more evidence-based approach that aligns public health objectives with economic sustainability. It stressed that taxation policies should be designed to avoid unintended consequences that could undermine industrial growth and worsen economic hardship. MAN also reiterated its long standing position that while it supports public health interventions aimed at reducing excessive sugar consumption, such policies must be carefully calibrated to reflect Nigeria’s economic realities and avoid placing additional strain on local manufacturers and consumers. The organisation called for deeper engagement between the National Assembly, federal ministries, industry stakeholders and public health experts to ensure that any final policy framework achieves a balance between revenue generation, health outcomes and industrial competitiveness. Economic analysts note that the debate over sugar-related taxation has intensified in recent months, with stakeholders divided between those advocating for stronger public health measures through higher excise duties and those warning of adverse effects on manufacturing output and employment. As deliberations continue, MAN insists that a rushed or poorly structured tariff amendment could deepen economic pressures and threaten long-term industrial stability, urging policymakers to prioritise consultation, data-driven analysis and policy coherence before finalising the bill.