06/06/2026
The Nigerian Senate has passed a new sugary drinks tax. The rate is not in the bill. It will be decided later by the Minister of Finance.
A levy pegged to retail prices rises automatically every time inflation pushes prices up. A bottle that cost ₦150 when the current ₦10 levy began now sells for ₦350 to ₦450. Under the new system, the tax on that bottle climbs with every price increase, with no new vote in the National Assembly required.
We have seen this before. When the ₦10 levy arrived in 2022, the Manufacturers Association of Nigeria projected the beverage sector would lose 40% of sales revenue, while government collected ₦81 billion in excise but lost ₦197 billion in other taxes. Consumption barely changed. Prices did.
FCFA is calling on the House of Representatives to decline concurrence until the rate is fixed in law, capped, and tested against household food budgets.
Read our full statement:
Nigeria's Senate has replaced the ₦10 per litre sugary drinks excise with a percentage levy tied to retail prices, with the exact structure left to the Min