Nigeria: Senate Passes Second Reading of Bill to Restructure Excise Duty On Sugar-Sweetened Beverages

ABUJA -- The Senate has passed the second reading of a bill proposing the restructuring of existing excise duty on sugar-sweetened beverages (SSBs) to fund health initiatives and infrastructure.

The bill, titled "A Bill to Amend the Customs, Excise Tariffs, Etc. (Consolidation) Act, to provide for the earmarking of Excise Duty on Non-Alcoholic, Carbonated or Sweetened Beverages for initiatives and infrastructure that improve the health of Nigerians, 2025 (SB. 713)," was sponsored by Senator Ipalibo Banigo (PDP, Rivers West).

Following the second reading, Deputy Senate President Senator Jibrin Barau referred the bill to the Senate Committees on Finance; Customs, Excise and Tariffs; and Health (Secondary and Tertiary) for further consideration.

Speaking during the debate on the bill's general principles, Senator Banigo described the legislation as a public health investment strategy rather than a new tax. She explained that it aims to redirect a portion of existing excise revenue from non-alcoholic, carbonated, and sweetened beverages to fund preventive health programs and primary healthcare infrastructure.

"The bill seeks to address the growing burden of non-communicable diseases (NCDs) such as diabetes, obesity, hypertension, and cardiovascular diseases, which are increasingly linked to excessive sugar consumption," she said.

Banigo noted that public health funding remains inadequate in Nigeria, with the country yet to meet the 15% budget allocation pledged under the Abuja Declaration. The bill, she added, would integrate health into the existing fiscal structure for earmarked levies, ensuring that excise proceeds from SSBs directly support health promotion, disease prevention, and early detection programs.

"Evidence from countries such as South Africa, Mexico, and the United Kingdom shows that linking excise revenue to health outcomes improves fiscal efficiency, encourages healthier consumer behavior, and stimulates industry innovation," she said.

Senator Banigo emphasized that the bill does not propose new tax rates but seeks to make better use of existing revenue to enhance public health and human capital development in Nigeria.

Read the original article on Vanguard.