Corporate Accountability and Public Participation Africa, CAPPA, has urged the National Assembly to strengthen Nigeria’s excise duty on sugar-sweetened beverages, SSBs, warning that weak taxation continues to worsen the country’s growing burden of non-communicable diseases.
The advocacy group made the call following a public hearing held by the Senate Joint Committee on Finance, Customs and Excise in Abuja, where lawmakers considered a bill seeking to amend the existing excise duty framework for non-alcoholic, carbonated, and sugar-sweetened beverages.
The bill, sponsored by Senator Ipalibo Harry Banigo, proposes replacing the current fixed N10 per litre excise duty with a levy based on a percentage of the retail price, while also providing for the earmarking of part of the revenue for health promotion and disease prevention programmes.
CAPPA noted that the proposed amendment represents a critical opportunity to align Nigeria’s fiscal policies with public health priorities, particularly as the country grapples with a rising prevalence of diet-related non-communicable diseases such as obesity, diabetes, and cardiovascular illnesses.
Speaking at the hearing, Senate President Godswill Akpabio, represented by Senator Adeniyi Adegbonmire, described the bill as more than a revenue-generating measure, noting that it is designed to redirect part of existing excise proceeds toward strengthening health infrastructure and improving the wellbeing of Nigerians.
According to CAPPA, Nigeria’s current SSB excise duty, introduced through the 2021 Finance Act, has become ineffective due to inflation and rising retail prices. The group observed that while the cost of sugary drinks has increased significantly over the years, the N10 per litre levy has remained unchanged, reducing its impact on consumption patterns and public health outcomes.
CAPPA further cited data showing that non-communicable diseases now account for nearly 30 per cent of annual deaths in Nigeria, with approximately 30,000 diabetes-related deaths recorded each year.
It added that treatment costs for diet-related illnesses continue to place severe financial pressure on households and the country’s underfunded health system.
The group also expressed concern over Nigeria’s low health-sector funding, which remains below five per cent of the national budget, despite increasing disease burdens and declining donor support.
While industry stakeholders have raised concerns that a higher SSB tax could lead to job losses and increased production costs, CAPPA argued that international evidence from countries such as South Africa, Mexico, the United Kingdom, and the Philippines shows that such taxes can reduce consumption without significant economic disruption.
The organisation called on lawmakers to resist industry pressure and adopt an evidence-based excise structure that prioritises public health, noting that effective SSB taxation could reduce healthcare costs while encouraging manufacturers to reformulate products and invest in healthier alternatives.
The National Assembly is expected to continue deliberations on the bill in the coming months.