Justice Obiora Egwuatu of the High Court in Abuja has ruled that the Nigeria Customs Service (NCS) must cease the collection of 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, issued on January 30, 2023, will remain in effect until the provisions of Section 13 of the Customs, Excise Tariff, etc. (Consolidation) Act, Cap C49 LFN, are fully complied with.
The case, filed on October 28, 2022, saw NECA, NBC, and SBC challenging the Finance Act of 2021, which imposed an excise duty of N10 per litre on the beverages, effective from 2022. This move faced significant opposition from the Organised Private Sector of Nigeria (OPSN), including NECA and the Manufacturers Association of Nigeria (MAN).

The court also declared that the 2022 Fiscal Policy Measures and Tariff Amendments issued by the Minister of Finance on March 1, 2022, were null and void.
Additionally, the NCS was found not to have the authority to demand transport and feeding allowances from the plaintiffs.
Justice Egwuatu’s ruling included the following declarations:
- The NCS lacks the power to administer, assess, or enforce excise duties on the specified beverages without a specific statute authorising them to do so.
- The phrase ‘non-alcoholic, carbonated, and sweetened’ should be read conjunctively, not disjunctively, when determining excisable beverages.
- The circular issued by the Minister of Finance on March 1, 2022, amending the Customs and Excise Tariffs was invalid and beyond the Minister’s powers.
- The NCS cannot demand transport, feeding, or monthly allowances from NECA members while carrying out their statutory duties.
The court ordered the NCS to immediately halt the collection of excise duty on the beverages until compliance with the relevant provisions is achieved.
The plaintiffs were awarded a cost of N200,000. Justice Egwuatu concluded that failure to follow legal procedures renders actions or services null and void.