Justice Obiora Egwuatu of the Federal High Court, Abuja, has ruled that the Nigeria Customs Service (NCS) must cease collecting excise duty on non-alcoholic carbonated sweetened beverages from members of the Nigeria Employers’ Consultative Association (NECA), including Nigeria Bottling Company Limited (NBC) and Seven-Up Bottling Company Limited (SBC).
The ruling, delivered on January 30 in Suit No: FHC/ABJ/CS/2004/2022, remains in effect until the provisions of Section 13 of the Customs, Excise Tariff, etc. (Consolidation) Act, Cap C49 LFN are met. The case, filed on October 28, 2022, challenged the NCS and the Minister of Finance, Budget, and Economic Planning over the implementation of excise duties imposed by the 2021 Finance Act.
Egwuatu declared the 2022 Fiscal Policy Measures and Tariff Amendments issued by the Minister of Finance as null and void, stating that the NCS lacked the statutory authority to administer or enforce excise duty on these beverages. The court also ruled that the NCS had no right to demand transport, feeding, and monthly allowances from the plaintiffs for costs incurred by its officers.
The judgement reinforces that non-compliance with statutory procedures renders any imposed duties invalid, affirming the rights of manufacturers within the Organised Private Sector of Nigeria.
