The Corporate Accountability and Public Participation Africa, CAPPA has commended the Nigerian Senate for passing a bill seeking to reform the country’s tax regime on sugar-sweetened beverages, SSBs, describing the move as a significant step toward addressing rising public health concerns linked to excessive sugar consumption.
The proposed legislation seeks to replace the current flat excise duty of ₦10 per litre on sugar-sweetened beverages with a percentage-based levy tied to retail prices. It also provides for part of the revenue generated from the tax to be dedicated to health promotion and disease prevention programmes.
In a statement issued on Wednesday, CAPPA Executive Director, Akinbode Oluwafemi, described the Senate’s action as a bold and evidence-based policy intervention aimed at protecting Nigerians from the growing burden of non-communicable diseases.
According to him, the passage of the bill demonstrates the Senate’s responsiveness to the increasing public health challenges facing the country and reflects a commitment to prioritising the well-being of Nigerians.
CAPPA also praised the sponsor of the bill, Ipalibo Banigo, for championing legislation focused on public health and social welfare.
The organisation noted that Banigo had earlier sponsored the amendment of the National Health Act, which increased funding for the Basic Health Care Provision Fund from one per cent to two per cent of the Consolidated Revenue Fund.
The group argued that dedicating a portion of SSB tax revenue to health programmes would provide additional resources for strengthening healthcare delivery and improving health outcomes across the country.
CAPPA highlighted the growing prevalence of non-communicable diseases such as Type 2 Diabetes, hypertension, cardiovascular diseases, obesity and dental-related illnesses, noting that these conditions now account for a significant proportion of deaths in Nigeria.
The organisation cited excessive consumption of sugar-sweetened beverages as a major contributor to the health crisis, particularly among young people who are frequently targeted through aggressive marketing campaigns.
According to CAPPA, Nigeria’s current ₦10-per-litre SSB tax, introduced through the Finance Act, has had limited impact on consumption patterns due to inflation and manufacturers’ ability to absorb the cost.
The group maintained that a price-based tax system aligns with recommendations by the World Health Organization, which advocates health taxes that substantially increase retail prices in order to reduce consumption and improve public health outcomes.
It further welcomed provisions in the bill that earmark part of the tax revenue for health promotion initiatives, describing the measure as a critical step toward strengthening preventive healthcare and supporting an underfunded health sector.
While applauding the Senate’s action, CAPPA stressed the importance of transparency and accountability in the management of the funds, calling for clear reporting mechanisms and public oversight.
The organisation urged the House of Representatives to quickly consider and approve the legislation so that it can be transmitted for presidential assent.
“Nigeria cannot afford to delay,” Oluwafemi said, adding that strengthening the SSB tax framework represents not only a fiscal policy measure but also a critical intervention to reduce disease burden, save lives and improve public health.
CAPPA concluded that a stronger sugar-sweetened beverage tax regime, combined with dedicated health funding, would provide a sustainable pathway for reducing preventable illnesses and securing healthier outcomes for future generations of Nigerians.
