The Senate on Wednesday approved a new excise duty regime on sugar-sweetened beverages.
The upper chamber also endorsed the creation of a dedicated funding stream to strengthen public health interventions across the country.
This move aims to curb the rising cases of non-communicable diseases (NCDs).
The decision followed the consideration and adoption of the report on the Customs, Excise Tariff, etc. (Amendment) Bill by the Joint Committee on Finance and Customs, Excise, and Tariff during plenary.
The report was presented by the Chairman of the Senate Committee on Finance, Sen. Sani Musa.
He stated that under the new framework, the existing N10 per litre excise duty on sugar-sweetened beverages would be replaced with a percentage-based levy tied to retail prices, to be determined by the Minister of Finance in line with global best practices.
Musa noted that the current flat-rate tax has been significantly eroded by inflation and is no longer sufficient to discourage excessive consumption or generate meaningful revenue.
He expressed concern over the rising prevalence of NCDs such as diabetes, obesity, hypertension, and cardiovascular conditions, which are increasingly linked to high sugar intake and unhealthy diets.
Musa also observed that Nigeria’s healthcare system remains underfunded and heavily reliant on out-of-pocket spending, leaving many citizens vulnerable to financial hardship and limited access to care.
The Senate directed the Minister of Finance to determine an appropriate levy structure consistent with global standards and ensure that implementation aligns with Nigeria’s broader health and fiscal objectives.
It also recommended stronger enforcement mechanisms for excise collection, ongoing stakeholder engagement, and supplementary measures such as nutrition awareness campaigns.
