OPS seeks Tinubu’s intervention to halt CETA Bill over economic concerns

The Organised Private Sector of Nigeria (OPS) has appealed to President Bola Ahmed Tinubu to intervene in the ongoing legislative process on the proposed Customs, Excise and Tariff Amendment (CETA) Bill, warning that its current provisions could have far-reaching economic consequences.

The OPS, comprising the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA), Nigeria Employers’ Consultative Association (NECA), Nigerian Association of Small Scale Industrialists (NASSI), and Nigerian Association of Small and Medium Enterprises (NASME), made the call in a joint advertorial published in national newspapers and endorsed by their respective presidents.

At the centre of their concern is a provision in the bill proposing a percentage levy per litre on non-alcoholic beverages, which they argue could impose additional strain on both businesses and consumers.

The group urged the Federal Government to engage the leadership of the National Assembly to halt further consideration of the bill and allow for a more coordinated approach to fiscal reforms. It recommended that the proposed legislation be stepped down to enable alignment with broader executive-led economic policies.

According to the OPS, such a move would improve policy coherence, enhance predictability within the fiscal environment, and support the development of a more effective excise framework. It added that suspending the bill would create room for structured, evidence-based consultations with industry stakeholders.

The group cautioned that, although it supports fiscal reforms and public health initiatives, the current draft of the CETA Bill raises significant social, economic, administrative and legal concerns that could undermine ongoing reform efforts.

It further argued that the proposed levy would have a regressive impact by eroding consumer purchasing power without delivering meaningful public health benefits or viable alternatives.

Highlighting the current challenges facing manufacturers and small businesses, the OPS noted that the sector is already grappling with exchange rate volatility, high energy costs, and rising prices of imported inputs, machinery and packaging materials.

It warned that introducing an additional excise burden could increase production costs, reduce capacity utilisation, and stall planned investments. The ripple effects, it said, would extend across the value chain, threatening the livelihoods of distributors, retailers and informal traders who rely on high-volume, low-margin sales.

“These pressures will ultimately be transferred to consumers through higher prices, leading to reduced demand and potential job losses,” the group stated.

Despite its concerns, the OPS commended President Tinubu for ongoing economic reforms since 2023, noting that the measures have contributed to improving macroeconomic stability and rebuilding investor confidence.

The group, however, stressed the need for careful policy alignment to ensure that new fiscal measures do not undermine the gains already recorded.