On 12 September 2022, The Honourable Minister of Finance, Budget and National Planning (“the Minister”), Mrs. Zainab Shamsuna Ahmed, signed the Excise Duty (Non-alcoholic, Carbonated and Sweetened Beverages) Regulations, 2022 (“the Regulations”). This was pursuant to her powers under Section 120 of the Customs and Excise Management Act Cap. C45 Laws of the Federation of Nigeria, 2004 (CEMA). The Regulations were subsequently published by the Federal Government of Nigeria (FGN) in its Official Gazette No. 168, Vol.109 of 16 September 2022.

The Regulations were issued to provide guidance on the implementation of the excise duty of ₦10 per litre on non-alcoholic, carbonated and sweetened beverages introduced by the Finance Act, 2021 to Section 21 of the Customs, Excise Tariffs, Etc. (Consolidation) Act (CETA). We draw your attention to our Finance Act, 2021: Impact Analysis for details.

We have summarised below the relevant provisions of the Regulations:

1. Dutiable non-alcoholic beverages

Paragraph 2(1) of the Regulations provides that excise duty shall be chargeable at ₦10 per litre on nonalcoholic, carbonated, and sweetened beverages, including beverages intended to be mixed into alcoholic drinks or sold in powdered, solid (including capsules and tablets), or concentrated form for consumption after dilution, manufactured in Nigeria or imported into Nigeria.

Paragraph 3 expands the definition of non-alcoholic beverages to include beverages with harmonised system (HS) codes (2202.1000.00 - 2202.9000.91- 2202.9000.99, 2009.1100.12 to 2009.9000.99) as contained in the Fifth Schedule to CETA, and nonalcoholic beverages containing caloric sweeteners, which are prepared by a combination of concentrates or other matter that is:

i. diluted with water;

ii. combined with carbon dioxide;

iii. combined with crushed ice, or processed to create crushed ice; or

iv. prepared by a combination of one or more of the above processes for human consumption.

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