A proposed overhaul of Nigeria’s excise duty framework has received Senate approval, paving the way for higher levies on sugar-sweetened beverages and the establishment of a dedicated funding source for public health programmes.
The measure is aimed at addressing the growing burden of non-communicable diseases (NCDs) and strengthening healthcare financing across the country.
The approval followed the adoption of a report on the Customs, Excise Tariff, etc. (Amendment) Bill presented during plenary by the Joint Committee on Finance and Customs, Excise and Tariff.
Presenting the report, Chairman of the Senate Committee on Finance, Sen. Sani Musa, explained that the current excise duty of N10 per litre on sugar-sweetened drinks would be replaced by a percentage-based levy linked to retail prices. The exact rate will be determined by the Minister of Finance in line with international best practices.
According to Musa, inflation has significantly reduced the effectiveness of the existing flat-rate tax, limiting its ability to discourage excessive sugar consumption and generate substantial revenue.
He warned that the increasing incidence of diabetes, obesity, hypertension and cardiovascular diseases has become a major public health concern, with many of these conditions associated with excessive sugar intake and poor dietary choices.
Musa also highlighted persistent challenges within the healthcare sector, noting that inadequate funding and heavy reliance on out-of-pocket payments continue to restrict access to quality medical services for many Nigerians.
Following its approval of the report, the Senate directed the Minister of Finance to design an appropriate levy structure that aligns with global standards while supporting the country’s broader health and economic objectives.
Lawmakers also called for stronger enforcement of excise duty collection, sustained engagement with stakeholders and the introduction of complementary initiatives, including public nutrition education campaigns, to maximise the policy’s impact.
The Senate expressed optimism that the new framework would help reduce the prevalence of lifestyle-related diseases while providing additional resources for critical healthcare interventions nationwide.