ENUGU, Nigeria (VOICE OF NAIJA)- Minister of Health and Social Welfare, Prof. Ali Pate, alongside major civil society groups and public-health advocates, has urged the Senate to overhaul the nation’s Sugar-Sweetened Beverage (SSB) Tax, replacing the current N10-per-litre charge with a stronger, percentage-based levy dedicated to funding health programmes.
The appeal was made in Abuja during a public hearing convened by the Senate Joint Committee on Finance, and Customs and Excise, to consider a bill seeking to amend Section 21(3) of the Customs and Excise Tariffs Act.
Sponsored by Senator Ipalibo Harry Banigo, the bill proposes shifting the SSB tax from a fixed rate to an ad valorem system tied to retail prices, with mandatory earmarking of part of the revenue for health promotion and NCD-prevention programmes.
This was contained in a statement signed by the Media and Communication Officer, CAPPA, Robert Egbe
Representing Senate President Godswill Akpabio, Senator Adeniyi Adegbonmire (SAN) described the legislation as a strategic public-health investment, not just a fiscal adjustment.
READ ALSO: HFPYV Calls For Tax Hike On Sugary Drinks, Ultra-Processed Foods
He said the existing N10 rate was “no longer realistic,” given the naira’s depreciation and the soaring cost of healthcare delivery.
The Ministry of Finance, represented by Bashir Abdulkadir, acknowledged alignment with the bill’s objectives but reminded lawmakers that Section 13 of the principal Act gives the president authority to vary excise rates.
The ministry noted it was already reviewing a broader excise framework covering SSBs and alcoholic beverages.
The committee, however, maintained its constitutional power to hold hearings and amend the law, stressing that the high burden of noncommunicable diseases fuelled by sugary drinks required urgent legislative response.
Prof. Pate backed the amendment with global health data and urged lawmakers to set the tax at no less than 20 per cent, with at least 40 per cent of proceeds ring-fenced for public-health financing.
He said this would create a sustainable revenue stream to support 230 million Nigerians and fast-track progress toward Universal Health Coverage.
Corporate Accountability and Public Participation Africa (CAPPA) pushed for an even stronger approach.
Its Executive Director, Akinbode Oluwafemi, recommended setting the tax at 50 per cent of the retail price, with a minimum threshold of 20 percent, in line with WHO guidance.
READ ALSO: CAPPA Proposes N130 Tax Per Litre On Sugary Beverages
CAPPA also called for a dedicated monitoring task force and strict earmarking of revenues for NCD prevention and health-system strengthening.
Oluwafemi argued that the current N10 charge is “ineffective, outdated, and economically unjustifiable,” insisting that a retail-price-based tax is the only credible path to reducing consumption and aligning Nigeria with global best practice.
He said adopting a 50 per cent benchmark would drive reformulation, reduce disease burden, and significantly boost public-health funding.
Multiple organisations including CISLAC, the Nigerian Cancer Society, Diabetes Society of Nigeria, the National SSB Tax Coalition, Healthy Food Policy Vanguard, and others expressed unanimous support.
The Diabetes Society’s Vice President, Dr. Mansur Ramalan, warned that diabetes prevalence had risen to seven percent nationwide and argued that a stronger SSB tax would not hurt revenue but could boost government earnings “by 200 per cent.”
The Federal Government of Nigeria introduced the SSB tax in 2021 to reduce sugary-drink consumption, tackle NCDs, strengthen the health sector, and generate revenue. Stakeholders say the policy must now evolve to meet Nigeria’s escalating health-financing needs.