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Home»News»New Sugar Tax Bill Wins CAPPA Endorsement
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New Sugar Tax Bill Wins CAPPA Endorsement

Chioma OsujiBy Chioma OsujiJune 4, 20264 Mins Read
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LAGOS, Nigeria(VOICE OF NAIJA)- Corporate Accountability and Public Participation Africa (CAPPA) has hailed the Nigerian Senate’s passage of a bill aimed at overhauling the country’s sugar-sweetened beverage (SSB) tax system and reducing the growing burden of non-communicable diseases.

The latest bill proposes replacing the current excise duty of N10 per litre with a percentage-based tax linked to the retail price of sugary drinks. 

It also provides for a portion of the revenue generated from the tax to be dedicated to health promotion and disease prevention programmes.

In a statement issued on Wednesday by its Media and Communications Officer, Robert Egbe, CAPPA described the legislation as a significant shift toward evidence-based policymaking.

The organization’s Executive Director, Akinbode Oluwafemi, praised the sponsor of the bill, Senator Ipalibo Banigo, for championing reforms focused on the health and well-being of Nigerians.

“This is a commendable and courageous move by the Senate. By passing this bill, the Senate has demonstrated responsiveness to the growing public health crisis facing the country. We now urge the National Assembly to expedite the remaining legislative processes to ensure that the reviewed bill becomes law without delay,” he said.

CAPPA also highlighted Banigo’s track record in advancing public health legislation, citing her role in the passage of the National Health Act Amendment Bill in April 2026. 

The amendment increased funding from one percent to two percent of the Basic Health Care Provision Fund (BHCPF) sourced from the Consolidated Revenue Fund.

READ ALSO: UNICEF Raises Alarm As Only 25% Of Nigerian Schoolchildren Attain Basic Literacy By Age 14

According to the organization, dedicating part of the revenue from the revised SSB tax to health-related initiatives would provide additional resources for government efforts to improve healthcare delivery and disease prevention.

Notably, CAPPA stressed that swift action is necessary due to the rising prevalence of non-communicable diseases (NCDs) in Nigeria. 

These include Type 2 diabetes, hypertension, cardiovascular diseases, obesity and dental health conditions.

The organization also noted that public health data show that nearly one in three deaths in Nigeria is linked to NCDs. 

It added that more than 11 million Nigerians are currently living with diabetes, placing increasing pressure on families and the country’s healthcare system.

CAPPA argued that excessive consumption of sugar-sweetened beverages remains a major contributor to the crisis, especially among young people who are frequently exposed to aggressive marketing by beverage companies.

The group maintained that Nigeria’s existing N10-per-litre tax, introduced under the Finance Act, has not been sufficient to change consumption patterns or achieve meaningful public health benefits.

It explained that adopting an ad valorem, or price-based, tax system is consistent with recommendations from the World Health Organization (WHO), which advocates health taxes that significantly increase product prices in order to reduce consumption.

READ ALSO: NCS Demands Tougher Tobacco Law Enforcement To Fight Nicotine Addiction

“Fixed-rate taxes like Nigeria’s current system are easily absorbed by manufacturers and rendered ineffective by inflation. A percentage-based levy ensures that the tax remains impactful over time, discourages excessive sugar intake, and better protects public health,” CAPPA stated. 

The organization also welcomed the provision requiring part of the tax revenue to be earmarked for health promotion, through strengthening Nigeria’s underfunded health sector, supporting preventive healthcare and expanding access to essential medical services.

However, CAPPA called for clear reporting mechanisms, emphasizing that transparency and accountability must remain central to the management and proper use of the earmarked funds.

Meanwhile, the group urged the House of Representatives to quickly consider and approve the bill before forwarding it to the President for assent.

“Nigeria cannot afford to delay. We are in the midst of a preventable public health crisis driven by unhealthy diets and weak regulatory frameworks. Strengthening the SSB tax is not just a fiscal measure, it is a life-saving intervention,” Akinbode added.

Ultimately, CAPPA maintained that lawmakers have made significant progress and should complete the legislative process without further delay.

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Chioma Osuji

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