Corporate Accountability and Public Participation Africa (CAPPA) has welcomed the Senate’s passage of a bill seeking to reform Nigeria’s tax regime on Sugar-Sweetened Beverages (SSB), calling on the House of Representatives to follow suit.
In a statement issued on Wednesday and signed by its Media and Communications Officer, Robert Egbe, the organisation described the move by the Senate as a major step toward addressing the country’s growing public health challenges.
It praised the upper legislative chamber for approving the bill, which seeks to replace the current flat N10-per-litre excise duty on sugar-sweetened beverages with a percentage-based levy linked to retail prices.
The proposed legislation also provides for part of the revenue generated from the tax to be earmarked for health promotion and disease prevention programmes.
CAPPA described the bill as a significant shift toward evidence-based fiscal policy and commended its sponsor, Senator Ipalibo Banigo, for championing reforms aimed at improving public health outcomes.
“This is a commendable and courageous move by the Senate,” CAPPA’s Executive Director, Akinbode Oluwafemi, said.
“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,” he added.
The organisation also highlighted Banigo’s role in advancing public health legislation, citing the successful passage of the National Health Act Amendment Bill in April 2026, which increased the funding source from one per cent to two per cent of the Basic Health Care Provision Fund from the Consolidated Revenue Fund.
According to CAPPA, dedicating a portion of revenue generated from the proposed SSB tax to health initiatives would strengthen government efforts to improve health outcomes across the country.
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The group said the bill comes at a critical time as Nigeria faces a rising burden of non-communicable diseases, including Type 2 diabetes, hypertension, cardiovascular diseases, obesity and dental conditions.
It noted that nearly one in three deaths in Nigeria is linked to non-communicable diseases, while more than 11 million Nigerians are living with diabetes, placing increasing pressure on households and the healthcare system.
CAPPA argued that excessive consumption of sugar-sweetened beverages remains a major contributor to the health crisis, particularly among young people.
The organisation maintained that the existing N10-per-litre tax introduced under the Finance Act has been ineffective in changing consumption patterns or delivering meaningful public health benefits.
It said a price-based tax system is consistent with global best practices and recommendations that health taxes should significantly increase retail prices to discourage excessive 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 also welcomed the bill’s provision for earmarking part of the tax revenue for health promotion, describing it as an important tool for strengthening preventive healthcare and expanding access to essential health services.
The organisation, however, stressed the need for transparency and accountability in the management of the funds, calling for clear reporting mechanisms and public oversight.
It urged the House of Representatives to quickly consider and pass the bill so it can be transmitted 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.”
Reiterating its support for the proposed reforms, CAPPA said a stronger SSB tax framework and dedicated health funding could help reduce the country’s disease burden and improve long-term health outcomes.
“Lawmakers have taken an important step. Now they must finish the job,” the organisation added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X