Nigerian Government to Temporarily Suspend N10 Tax on Sweetened Beverages
The Nigerian federal government has announced plans to temporarily suspend the N10 tax on sweetened sugar beverages as part of its economic stabilization efforts.
Minister of Finance Wale Edun made the announcement during a meeting with the National Action on Sugar Reduction (NASR). Edun explained that this measure is designed to help beverage companies cope with the current economic challenges without facing the risk of collapse.
“This measure aims to help beverage companies navigate the current economic difficulties without going under. The temporary suspension of the sugar tax is seen as a measure to stabilize the economy and support the beverage industry during this critical period,” Edun stated.
He emphasized the importance of balancing the need for revenue with the necessity of supporting industries in tough times. “We support your need for revenue, but we must find a balance,” he said.
This announcement follows the government’s earlier decision to implement a 150-day zero import duty window for essential foods like rice, maize, and wheat. The move comes amid rising inflation, which reached 34.19 percent in June 2024, alongside increasing energy costs and high interest rates that continue to strain manufacturers and consumers alike.
