The Healthcare Federation of Nigeria (HFN) has expressed strong approval of the Senate's passage of the Customs, Excise Tariff, Etc. (Consolidation) Act (Amendment) Bill, 2025, calling it a significant advancement for healthcare financing and health outcomes in Nigeria. The bill, passed on Thursday, replaces the current flat-rate excise duty on sugar-sweetened beverages with a levy based on retail price. It also establishes a framework to direct a portion of the revenue toward health promotion and healthcare financing.
Addressing Non-Communicable Diseases
According to HFN, this legislation will help Nigeria combat the increasing burden of non-communicable diseases while strengthening domestic funding for the health sector. The federation praised Senator Ipalibo Harry Banigo, Chairman of the Senate Committee on Health, for sponsoring the bill, and commended the Senate leadership for supporting the reform. HFN noted that Nigeria faces rising cases of diabetes, obesity, cardiovascular diseases, cancers, and other non-communicable diseases, which strain households, businesses, and government resources.
HFN President's Remarks
Njide Ndili, President of HFN, stated, “The Senate’s passage of this bill is an important milestone for Nigeria’s health sector and for the broader goal of achieving Universal Health Coverage. For many years, HFN and numerous public health stakeholders have advocated not only for the introduction of pro-health taxes, but also for the strategic allocation of the revenues generated from these taxes towards strengthening healthcare delivery, expanding health coverage and protecting vulnerable populations. We commend Senator Banigo and the Senate for advancing a reform that recognizes the important connection between fiscal policy and public health.”
Years of Advocacy
The federation highlighted that the bill's passage reflects years of advocacy by health sector stakeholders who have consistently pushed for revenues from sugar-sweetened beverage taxes and other pro-health taxes to be ring-fenced and invested in Nigeria's healthcare system. Since 2020, HFN has advocated for the introduction and strengthening of pro-health taxes on products linked to preventable diseases. The federation maintained that proceeds from such taxes should be directed to healthcare financing, including support for primary healthcare, health insurance coverage, healthcare infrastructure, health promotion, and services for vulnerable populations.
Policy Recommendations and Engagement
As part of its advocacy, HFN developed policy recommendations calling for the ring-fencing of sugar-sweetened beverage tax revenues for the healthcare sector and engaged policymakers on the need to use such revenues to strengthen Nigeria's health system. The federation also recalled its participation in a national Health Financing Policy Dialogue on Pro-Health Tax Implementation in 2022, organized by PharmAccess in partnership with Nigeria Health Watch and the World Bank. This dialogue brought together representatives from government, the private sector, development partners, and civil society to discuss sustainable healthcare financing, accelerate progress toward Universal Health Coverage, and explore effective frameworks for implementing pro-health taxes.
Acknowledgment of Partners
HFN also commended the contributions of advocacy and technical partners, including PharmAccess, Nigeria Health Watch, the World Bank, the Federal Ministry of Health and Social Welfare, and the Federal Ministry of Finance.
