The Senate on Wednesday approved a revised excise duty framework on sugar-sweetened beverages and backed the creation of a dedicated funding stream to support public health interventions across Nigeria.
The decision is aimed at addressing the growing incidence of non-communicable diseases (NCDs) such as diabetes, obesity, hypertension, and cardiovascular ailments, which have been increasingly associated with excessive sugar consumption.
The resolution followed the consideration and adoption of the report of the Joint Committee on Finance and Customs, Excise and Tariff on the Customs, Excise Tariff, etc. (Amendment) Bill during plenary.
Presenting the committee’s report, Chairman of the Senate Committee on Finance, Senator Sani Musa, explained that the new policy would replace the existing flat-rate excise duty of N10 per litre on sugar-sweetened beverages with a percentage-based levy linked to retail prices.
The exact rate, he said, would be determined by the Minister of Finance in accordance with international best practices.
Musa noted that the current flat-rate system had lost value due to inflation and was no longer effective in discouraging excessive consumption or generating adequate revenue for government needs.
He warned that the rising burden of NCDs posed a serious public health challenge, stressing that dietary habits high in sugar were contributing significantly to the trend.
The senator also highlighted structural weaknesses in Nigeria’s health financing system, noting that heavy reliance on out-of-pocket payments continues to expose many citizens to financial hardship and limits access to essential healthcare services.
Following deliberations, the Senate mandated the Minister of Finance to develop an appropriate levy structure aligned with global standards, ensuring that implementation supports both fiscal stability and public health objectives.
The chamber also called for stronger enforcement of excise collection, sustained engagement with industry stakeholders, and complementary health measures, including nationwide nutrition awareness campaigns to encourage healthier consumption patterns.
