The Senate has passed the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill, 2025, a measure aimed at strengthening public health financing and addressing the growing burden of non-communicable diseases in Nigeria. The bill, sponsored by Senator Ipalibo Harry-Banigo, Chairman of the Senate Committee on Health (Secondary and Tertiary), scaled third reading on the floor of the Senate, marking a significant step in efforts to align fiscal policy with public health objectives.
Key Provisions of the Bill
The proposed legislation seeks to amend Section 21(3) of the Customs, Excise Tariff, etc. (Consolidation) Act by replacing the current fixed excise duty of N10 per litre on sugar-sweetened beverages with a levy calculated as a percentage of the retail price. It also establishes a framework for directing part of the revenue generated from the levy towards health promotion, disease prevention programmes, primary healthcare strengthening and support for vulnerable populations through health insurance coverage.
Senator's Remarks
Speaking on the passage of the bill, Banigo said the legislation is designed to address preventable health challenges while creating sustainable domestic funding sources for healthcare services. “This legislation is fundamentally about saving lives, preventing disease and securing the future of healthcare financing in Nigeria. As a medical doctor and public health advocate, I have witnessed firsthand the devastating impact of preventable non-communicable diseases on Nigerian families,” she said. The senator added that the measure provides an evidence-based approach that encourages healthier choices while generating additional resources to strengthen the healthcare system.
Context and Rationale
The bill comes amid growing concern over rising cases of diabetes, obesity, hypertension, cardiovascular diseases and other non-communicable diseases associated with excessive sugar consumption and unhealthy dietary habits. Findings presented before the Joint Senate Committee on Finance, Customs (Excise and Tariff), and Health (Secondary and Tertiary) indicated that non-communicable diseases now account for a significant share of illnesses and deaths in Nigeria, placing increasing pressure on households and healthcare institutions. The committee observed that the existing N10 per litre excise duty had been eroded by inflation and no longer served as an effective public health deterrent or sustainable source of revenue.
International Examples
In its report, the committee cited international experiences from countries including South Africa, Mexico and the United Kingdom, where sugar-sweetened beverage taxes have been used to discourage excessive consumption, encourage product reformulation and improve public health outcomes. Lawmakers said the amendment forms part of broader efforts to strengthen domestic resource mobilisation for healthcare and reduce dependence on external funding sources.
Revenue Allocation
Under the proposed framework, revenues generated from products linked to health risks would help fund preventive health programmes, public awareness campaigns, primary healthcare services and expanded health insurance coverage for poor and vulnerable Nigerians. Public health advocates have welcomed the passage of the bill, describing it as an example of health-focused fiscal policy that aligns taxation measures with national health priorities.
Stakeholder Input
The legislation attracted input from stakeholders, including the Federal Ministry of Finance, the Federal Ministry of Health and Social Welfare, the Nigeria Customs Service, the National Health Insurance Authority, civil society organisations, public health experts, academics and industry representatives. The Joint Senate Committee concluded that strengthening excise taxation on sugar-sweetened beverages would support both public health and fiscal objectives by reducing unhealthy consumption patterns while creating additional funding streams for critical healthcare interventions. The bill now moves to the next stage of the legislative process before it can become law.
