Nigeria’s growing burden of non communicable diseases, NCDs and the rising cost of treating preventable illnesses have renewed debate over the proposed amendment to the Customs, Excise Tariff, etc. (Consolidation) Act, CETA to strengthen the country’s tax on sugar sweetened beverages.
The proposed amendment seeks to replace the existing fixed excise duty of N10 per litre on non alcoholic, carbonated and sweetened beverages with a value based, ad valorem tax linked to retail prices.
The Senate passed the bill on June 4, 2026, and it is awaiting concurrence by the House of Representatives before it can be transmitted to the President for assent.
The debate comes against the backdrop of concerns over the increasing prevalence of NCDs in Nigeria, with unhealthy diets and high consumption of sugar, salt and ultra processed foods identified as important risk factors.
The public health implications were highlighted by an incident involving a nine year old girl treated at a hospital in Enugu after she was diagnosed with Type 1 Diabetes Mellitus and Diabetic Ketoacidosis.
According to Enugu based paediatrician, Dr Chiwetalu Odoh, the child had consumed more than 17 sachets of water overnight, repeatedly woke up to urinate, and had reportedly lost weight over three months despite developing an unusually strong appetite.
Her random blood sugar reading was recorded as “Hi”, while urine ketones were significantly positive.
Odoh said delayed treatment of Diabetic Ketoacidosis could result in severe complications including shock, heart failure, kidney failure, respiratory failure, seizures, coma and death.
He, however, did not attribute the child’s condition to diet or suggest that unhealthy diets are the sole cause of NCDs.
Studies cited by public health advocates, including research associated with the World Health Organisation and the NCD Alliance, have identified unhealthy diets, particularly diets high in sugar, salt and trans fats, as major risk factors for conditions including heart disease, stroke, diabetes and some cancers.
Sugar sweetened beverages have in particular become a focus of public health interventions globally because of their links to obesity, type 2 diabetes and other diet related health problems.
Nigeria introduced an excise duty on sugar sweetened beverages through the Finance Act 2021, which amended CETA by inserting Section 21(3) to impose a fixed N10 per litre duty on non alcoholic, carbonated and sweetened beverages.
Public health advocates have argued that the fixed levy has limited impact because it represents only a small proportion of the retail price of most sugary drinks, reducing its ability to influence consumption patterns, encourage product reformulation or generate significant resources for health interventions.
The proposed CETA amendment would therefore shift the tax from a fixed levy to an ad valorem system, allowing the tax burden to move with the retail value of the products.
Supporters of the proposed change argue that stronger taxation could serve a dual purpose by discouraging excessive consumption of sugary drinks while generating additional domestic resources for healthcare and disease prevention.
The proposal is also being considered against Nigeria’s health financing challenges. Out of pocket payments account for a large proportion of healthcare spending, placing significant financial pressure on households, while limited public health financing has contributed to pressure on healthcare infrastructure and services.
Public health advocates have also argued that the economic cost of NCDs extends beyond medical expenses to lost working hours, reduced productivity and household financial hardship.
However, stronger taxation of sugar sweetened beverages has also attracted concerns from manufacturers and other stakeholders over its potential effect on production costs, consumer prices, investment and employment, particularly amid existing economic pressures.
The debate has consequently shifted beyond whether sugary drinks should be taxed to how fiscal policy can balance public health objectives with the need to protect businesses, jobs and household purchasing power.
Advocates of the proposed amendment say the tax should form part of a broader food and health policy framework, alongside measures such as a Nutrient Profile Model, Front of Pack Labelling, mandatory sodium reduction and restrictions on unhealthy food marketing.
They also support ring fencing part of the revenue generated from the tax for public health interventions.
The proposed reform therefore places prevention at the centre of the debate over Nigeria’s response to NCDs, with proponents arguing that reducing exposure to major dietary risk factors could lower future healthcare costs while supporting a healthier and more productive population.