NUFBTE urges House of Representatives to halt passage of CETA Bill
The National Union of Food, Beverage, and Tobacco Employees (NUFBTE) has called on the House of Representatives to withhold its approval of the Customs, Excise Tariffs, Etc. (Consolidation) Amendment Bill, 2025, known as the CETA Bill. An open letter addressed to House Speaker Abbas Tajudeen, co-signed by NUFBTE President Comrade Garba Dankama, expressed concerns that passing the bill would add undue strain on Nigerian workers and the manufacturing sector amid ongoing economic reforms.
The proposed CETA Bill seeks to replace the existing ₦10-per-litre specific tax on soft drinks with a percentage-based levy calculated from the retail price of these products. Dankama articulated that Nigerian workers are already facing significant challenges and cannot bear the burden of what he termed a poorly designed tax measure. He cautioned that the legislation could exacerbate an already challenging business environment, turning it into a more catastrophic situation for the manufacturing sector.
“Dankama emphasized that both the manufacturing industry and the food, beverage, and tobacco sectors are currently in a state of acute distress,” stating that the passage of the CETA Bill could inflict irreversible damage to an already fragile industrial foundation and jeopardize the livelihoods of numerous workers reliant on these sectors.
He highlighted that capacity utilization within manufacturing has sharply declined as producers grapple with high borrowing costs, increasing energy and logistics expenses, ongoing foreign exchange constraints, and reduced consumer purchasing power. Many production lines have been either reduced or entirely shut down. The agricultural sector, which supports hundreds of thousands of jobs, cannot withstand further tax increases without risking additional closures and layoffs.
Dankama expressed confidence in the House of Representatives to safeguard the interests of Nigerian workers while supporting the manufacturing sector during these economic challenges. He noted that workers have already felt the impact of government reforms, such as the removal of fuel subsidies and foreign exchange adjustments, and may not be able to absorb further financial pressures.
He argued that income levels have not kept pace with soaring costs associated with transportation, food, housing, and other essentials. “The sector needs space to adjust to current economic conditions and remain viable. An aggressive percentage-based tax at this point could create significant strain, affecting investments, jobs, and livelihoods,” he stated.
Furthermore, Dankama cautioned that a percentage-based tax would disproportionately affect producers, given the industry’s vulnerability to external economic fluctuations and instability in global commodity prices. He warned that the proposed tax could lead to higher consumer prices, decreased demand, and further factory closures, undermining the stability of the industry.
“Taxing a product category that constitutes only 5% of the national sugar intake will not yield meaningful public health benefits. Instead, it will likely drive consumers toward cheaper, unregulated alternatives and threaten the livelihoods of over a million Nigerians already struggling with the fallout from recent economic changes,” he concluded.
