Minister of Health and Social Welfare, Prof Ali Pate, civil society organisations (CSOs) and other stakeholders working in public health have rallied the Senate for an upward review and restructuring of the Sugar-Sweetened Beverage (SSB) Tax, calling for a shift from the current specific excise of N10 imposed on each litre of sugary drink to a stronger ad valorem, percentage-based system that raises the overall rate and secures dedicated revenue for strengthening Nigeria’s health sector.
Speaking during a public hearing in Abuja on Thursday, November 27, 2025, organised by the Senate Joint Committee on Finance, Customs and Excise, they said Nigeria was experiencing a surge in noncommunicable diseases (NCDs) linked to excessive consumption of sugary drinks and unhealthy diets, and that formerly rare diseases such as diabetes, stroke, obesity and heart diseases are now some of the leading causes of premature death.
The public hearing was on a bill, sponsored by Senator Ipalibo Harry Banigo, titled “Bill for an Act to Amend Section 21(3) of the Customs, Excise Tariffs, Etc. (Consolidation) Act to Replace the Fixed Ten Naira (₦10) Per Litre Excise Duty on Non-Alcoholic, Carbonated Sugar-Sweetened Beverages with a Percent Levy Per Litre of the Retail Price, and to Provide for the Earmarking of a Portion of the Revenue for Health Promotion and Disease Prevention Programmes.”
In his remarks, Senator Adeniyi Adegbonmire (SAN), who represented Senate President Godswill Akpabio, described the bill as an important one in the interest of public health.
Echoing Senator Banigo’s debate, he said: “’This amendment is not merely fiscal in nature; it is a public health investment strategy that aligns taxation policy with our national health priorities. It proposes the restructuring of existing Excise Duty on sugar-sweetened beverages (SSBs), not to impose more burden on citizens, but to redirect part of the existing revenue to finance health-related programmes and infrastructure that will improve the well-being of Nigerians.”
He reinforced support for the Bill, saying, “Clearly, the N10 per litre excise is no longer realistic in the present-day Nigeria, not only from the value of the naira, but more importantly, the cost of providing health interventions for health-related challenges.”
Minister of Finance, Olawale Edun, who was represented by Bashir Abdulkadir, a Director of Technical Services, said the Ministry was aware of the bill and generally aligned with it.
However, the ministry drew attention to Section 13 of the Customs, Excise Tariffs, Etc. (Consolidation) Ac, saying it empowered the president as the sole authority to vary rates.
It argued that the ministry was already working on a comprehensive process that would cover SSBs and alcoholic drinks and urged the Senate to take note.
Responding, the Joint Committee asserted its power under the Constitution to hold public hearing and amend the law, adding this was a matter of national importance in the interest of public health that Nigerians had been calling for.
For Health Minister Pate and the CSOs, the situation is a public health crisis that requires urgent policy intervention, such as an effective SSB Tax and earmarking of same to strengthen the health sector, to stem the tide.
The Federal Government imposed the tax as a pro-health policy in 2021 to discourage excessive consumption of sugary drinks, tackle sugary drinks-linked NCDs, strengthen Nigeria’s ailing public health sector, and boost government revenue.
But Prof. Pate and the health sector stakeholders told the senate that the current N10 per litre tax, which came into effect when the average bottle of SSB was N150, has been eroded by inflation and is too minimal to affect Nigerians’ consumption of sugary drinks and protect public health.
They urged the legislature to amend the bill.
Prof. Pate, who backed the amendment with data from the World Health Organisation and other global health bodies, urged the lawmakers to set the SSB Tax at no less than 20 percent and to earmark at least 40 percent of the revenue for public health, saying it was in the interest of “230 million Nigerians”.
He said it would “create a valuable funding stream” and, citing the Philippines example, argued that it would aid Nigeria’s progress towards expanding Universal Health Coverage.
Corporate Accountability and public Participation Africa (CAPPA) made three recommendations to make the amendment more effective, including raising the tax to at least 50 percent of the retail price of sugary drinks.
In his presentation to the Senate committee, Akinbode Oluwafemi, CAPPA’s Executive Director, urged Nigeria to “Adopt a strong retail-price–based excise structure by setting the levy at 50 percent of the retail price, with an absolute minimum floor of 20 percent, in line with WHO guidance and the Bloomberg Task Force on Fiscal Policy for Health. This level is necessary to trigger meaningful reductions in consumption.
“Earmark revenues from the SSB tax for public health programmes, particularly for the prevention and management of non-communicable diseases, to ensure sustainable financing for population health.
“Establish a national monitoring and evaluation task force to oversee implementation, ensure compliance, track consumption trends, and measure the health and fiscal impact of Nigeria’s SSB tax policy.”
He added that the review of the excise on sugar-sweetened beverages is “constitutionally sound, legally justified, economically prudent, and aligned with Nigeria’s public-health obligations and international commitments. Nigeria can no longer rely on a fixed ₦10 duty that has lost its value and its purpose.”
According to him, a percentage-based levy that reflects real market prices is the only credible path to restoring the effectiveness of the policy and aligning it with global best practice.”
He added that, by adopting a benchmark rate of 50 percent of the retail price, with a non-negotiable minimum floor of 20 percent, “the National Assembly will ensure that the tax is strong enough to reduce consumption, stimulate industry reformulation, and generate measurable health gains.
“Equally important is the inclusion of clear earmarking provisions, so that a portion of the revenue is dedicated specifically to public-health promotion, NCD prevention, and the revitalisation of Nigeria’s fragile healthcare system.”
Others who spoke in favour of the amendment included the Civil Society Legislative Advocacy Centre (CISLAC), Nigerian Cancer Society, Diabetes Society of Nigeria, the National SSB Tax Coalition, the Healthy Food Policy Vanguard, the Nigerian Tobacco Control Alliance and CISLAC, Redeemers University, among others.
“We completely align ourselves with this amendment,” said the Vice President of the Diabetes Society of Nigeria, Dr. Mansur Ramalan, adding that Nigeria was experiencing a diabetes prevalence that had risen to about seven percent.
Dr Ramalan addressed concerns by the Ministry of Finance about the possible negative effects on government revenue, saying the reverse was the case, and government revenue “will increase by 200 percent.”
