NUFBTE urges Representatives to halt passage of CETA Bill

The leadership of the National Union of Food, Beverage, and Tobacco Employees (NUFBTE) has called on the House of Representatives to refrain from concurring with the Customs, Excise Tariffs, Etc. (Consolidation) Amendment Bill, 2025 (CETA Bill), which is currently under consideration.

In an open letter addressed to the Speaker of the House, Abbas Tajudeen, and signed by NUFBTE President, Comrade Garba Dankama, the union warned that passing the bill at this time would impose an additional burden on workers and the manufacturing sector, especially amid ongoing economic reforms.

The 2025 CETA bill suggests replacing the existing fixed tax of ₦10 per litre on soft drinks with a percentage-based levy on the retail price of the products.

Dankama emphasised that workers cannot endure another poorly designed tax burden, warning that the proposed legislation could transform an already challenging operating environment into a disastrous one for the sector.

He explained that the manufacturing industry, particularly the food, beverage, and tobacco sectors, is currently experiencing significant distress. Passing the CETA bill would likely cause irreversible damage to an already fragile industrial base and threaten the livelihoods of workers dependent on it, he added.

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“Capacity utilisation across the manufacturing sector has sharply declined as producers grapple with prohibitively high borrowing costs, rising energy and logistics expenses, persistent foreign exchange constraints, and weakened consumer purchasing power. Many production lines have been scaled back or entirely shut down.

“The sector, which supports hundreds of thousands of jobs across farming, haulage, distribution, and retail, cannot absorb another tax increase without risking a wave of further closures, job losses, and breakdowns in the value chain,” he stated.

Dankama expressed confidence that the House leadership will prioritise the interests of Nigerian workers while supporting the manufacturing sector through these challenging economic times.

He noted that workers have already suffered from the Federal Government’s removal of fuel subsidies and foreign exchange reforms, making it difficult for them to handle another financial burden. He added that workers’ incomes have not kept pace with the rapid increases in transportation, food, housing, and other essential costs.

“The sector needs the opportunity to adjust to the current economic realities and remain sustainable. An aggressive, percentage-based tax at this moment could place serious strain on the industry, affecting investment, jobs, and livelihoods. We must not place additional pressure on an industry that provides employment and sustains the livelihoods of so many Nigerians,” he said.

Furthermore, the NUFBTE president pointed out that a percentage-based tax would heighten the burden on producers, given that manufacturing costs are already vulnerable to external fluctuations resulting from global commodity price changes and geopolitical instability.

He cautioned that the proposed levy would lead to increased prices, reduced demand, and additional factory closures.

“Taxing a product category that accounts for only five percent of national sugar intake will not yield meaningful public health benefits. Instead, it will simply drive consumers toward cheaper, unregulated alternatives while jeopardising the livelihoods of over a million Nigerians who have already suffered from recent economic reforms,” he added.