Corporate Accountability and Public Participation Africa (CAPPA) has commended the Senate for its successful passage of the landmark bill seeking to reform Nigeria’s tax on Sugar-Sweetened Beverages (SSBs), describing it as a bold and timely step toward safeguarding public health.

 

The bill, which proposes replacing the current flat 10 naira-per-litre excise duty with a percentage-based levy tied to retail price, while also earmarking a portion of the revenue for health promotion and disease prevention, represents a significant shift toward evidence-based fiscal policy.

 

CAPPA saluted the sponsor of the bill, Senator Ipalibo Banigo, for her leadership and commitment to advancing policies that prioritise the health and well-being of Nigerians.

 

“This is a commendable and courageous move by the Senate,” CAPPA’s Executive Akinbode Oluwafemi said in a statement issued on Wednesday.

 

“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.”

 

Spotlighting Ipalibo’s role, CAPPA commended her commitment to driving public health legislation as evidenced in the successful passage of the National Health Act Amendment Bill in April 2026 to increase the fund source from 1 percent to 2 percent of Basic Health Care Provision Fund (BHCPF) from the consolidated revenue funds.

 

The organisation further noted that an earmarked SSB tax revenue will strengthen the resources available to the government on improving national health outcomes.

 

It stressed that the urgency of the bill could not be overstated, pointing to Nigeria’s rapidly escalating burden of non-communicable diseases, including Type 2 diabetes, hypertension, cardiovascular diseases, obesity, and dental conditions.

 

Referencing public health data, the organisation noted nearly one in three deaths in Nigeria is now linked to NCDs, while over 11 million Nigerians are living with diabetes, placing enormous strain on households and an already overstretched health system.

 

A major driver of this crisis, CAPPA insisted, is the excessive consumption of sugar-sweetened beverages, which are aggressively marketed and widely consumed, particularly among young people.

 

The group argued that Nigeria’s current 10 naira-per-litre SSB tax – introduced under the Finance Act – has proven too low to influence consumption patterns or deliver meaningful health outcomes.

 

It explained that moving to a price-based (ad valorem) tax system aligns with global best practices recommended by bodies such as the World Health Organization (WHO), which emphasises that effective health taxes must significantly raise retail prices to reduce consumption.

 

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

 

CAPPA further welcomed the bill’s provision to earmark part of the revenue for health promotion, describing it as a critical mechanism for strengthening Nigeria’s underfunded health sector, supporting preventive care, and expanding access to essential health services.

 

While applauding the Senate’s progress, CAPPA emphasised that transparency and accountability must guide the management of earmarked funds, with clear reporting and public oversight to ensure resources are used effectively.

 

The organisation called on the House of Representatives to act swiftly in concurring with the Senate and transmitting the bill for presidential assent.

 

“Nigeria cannot afford to delay,” Akinbode said. “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.”

 

CAPPA reiterated that a stronger SSB tax regime, combined with dedicated funding for health initiatives, offers Nigeria a sustainable pathway to reduce disease burden, save lives, and secure the health of future generations.

 

“Lawmakers have taken an important step. Now they must finish the job,” the statement concluded.