FeaturesLife & StyleSenate Reviews Tax On SSBs, Replaces It With Percentage Based Levy

Senate Reviews Tax On SSBs, Replaces It With Percentage Based Levy

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By Akinwale Kasali

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The Corporate Accountability and Public Participation Africa, CAPPA, has lauded the Senate for passing a landmark bill seeking to overhaul Nigeria’s tax regime on Sugar-Sweetened Beverages, SSBs.

 

CAPPA had described the move as a major breakthrough in the fight against rising non-communicable diseases in the country, as Bill proposes replacing the current flat N10-per-litre excise duty on Sugary Drinks with a percentage-based levy tied to retail price, while also setting aside part of the revenue for health promotion and disease prevention programmes.

 

Following this development, CAPPA showered encomium on the Senate for what it called a “bold and timely” intervention aimed at protecting Nigerians from the growing burden of diet-related illnesses.

 

Akinbode Oluwafemi, CAPPA’s Executive Director stated that the move by the Senate was commendable and courageous.

 

“By passing this bill, the Senate has demonstrated responsiveness to the growing public health crisis facing the country.

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“We now urge the National Assembly to expedite the remaining legislative processes to ensure that the reviewed bill becomes law without delay.”

 

The organisation particularly applauded the sponsor of the bill, Senator Ipalibo Banigo, for championing policies focused on public health and social welfare.

 

CAPPA noted that Banigo had earlier sponsored the National Health Act Amendment Bill, which was passed in April 2026 to increase funding for the Basic Health Care Provision Fund from one per cent to two per cent of the Consolidated Revenue Fund.

 

The group said the planned earmarking of part of the SSB tax revenue for health interventions would provide much-needed support for Nigeria’s struggling healthcare system.

 

According to CAPPA, Nigeria is witnessing a sharp rise in non-communicable diseases such as Type 2 diabetes, hypertension, cardiovascular diseases, obesity and dental conditions, with sugary drinks identified as a major contributor.

 

It cited public health statistics indicating that nearly one in three deaths in Nigeria is linked to non-communicable diseases, while more than 11 million Nigerians are currently living with diabetes.

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CAPPA argued that the existing N10-per-litre tax introduced under the Finance Act has failed to reduce consumption because manufacturers easily absorb the cost without significantly increasing retail prices.

 

“Fixed-rate taxes like Nigeria’s current system are easily absorbed by manufacturers and rendered ineffective by inflation.

 

“A percentage-based levy ensures that the tax remains impactful over time, discourages excessive sugar intake, and better protects public health.”

 

The advocacy group added that the proposed ad valorem tax system aligns with recommendations by the World Health Organisation, which advocates stronger health taxes to reduce consumption of harmful products.

 

CAPPA also welcomed provisions in the bill that would dedicate part of the proceeds to health promotion, preventive care and improved access to essential health services.

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However, the organisation stressed that transparency and accountability must guide the management of the funds to ensure effective utilisation.

 

While hailing the Senate’s action, CAPPA called on the House of Representatives to urgently concur with the bill and transmit it to the President for assent.

 

“Nigeria cannot afford to delay, 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 maintained that a stronger tax regime on sugary drinks would help reduce disease burden, save lives and secure healthier outcomes for future generations.

 

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


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