Corporate Accountability and Public Participation Africa (CAPPA) has applauded the Senate for passing a landmark bill aimed at reforming Nigeria’s tax regime on Sugar-Sweetened Beverages (SSBs), describing the move as a significant step toward addressing the country’s growing public health challenges.
The bill seeks to replace the current flat excise duty of N10 per litre on sugary drinks with a percentage-based levy linked to retail prices. It also proposes earmarking part of the revenue generated from the tax for health promotion and disease prevention programmes.
In a statement issued on Wednesday, CAPPA’s Executive Director, Akinbode Oluwafemi, commended the Senate for what he described as a bold and evidence-based policy intervention.
“This is a commendable and courageous move by the Senate,” 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.”
The organisation also praised the sponsor of the bill, Senator Ipalibo Banigo, for her role in advancing public health legislation.
CAPPA noted that her commitment was evident in the successful passage of the National Health Act Amendment Bill earlier in April 2026, which increased funding for the Basic Health Care Provision Fund from one percent to two percent of the Consolidated Revenue Fund.
According to CAPPA, dedicating a portion of SSB tax revenue to health programmes would provide additional resources to improve healthcare delivery and strengthen disease prevention efforts across the country.
The group stressed that the bill comes at a critical time, citing the rising burden of non-communicable diseases (NCDs) such as Type 2 diabetes, hypertension, cardiovascular diseases, obesity and dental illnesses.
It noted that nearly one in three deaths in Nigeria is linked to NCDs, while more than 11 million Nigerians are currently living with diabetes, placing increasing pressure on families and the healthcare system.
CAPPA identified excessive consumption of sugary drinks as a major contributor to the growing health crisis, particularly among young people who are frequently targeted by beverage marketing campaigns.
The organisation argued that Nigeria’s existing N10-per-litre SSB tax has had limited impact on consumption patterns and public health outcomes because it is too low to influence consumer behaviour.
It maintained that adopting a price-based tax system would align Nigeria with global best practices and recommendations by the World Health Organization (WHO), which advocates taxes that significantly increase retail prices to reduce consumption of unhealthy products.
“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.”
The advocacy group also welcomed the bill’s provision for earmarking part of the tax revenue for health promotion, describing it as an important mechanism for strengthening Nigeria’s underfunded health sector and expanding access to preventive healthcare services.
However, CAPPA emphasised the need for transparency and accountability in managing the earmarked funds, calling for clear reporting structures and public oversight mechanisms.
The organisation urged the House of Representatives to quickly concur with the Senate and facilitate the transmission of the bill for presidential assent.
“Nigeria cannot afford to delay,” Oluwafemi 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.”
CAPPA maintained that a stronger SSB tax regime, coupled with dedicated funding for health initiatives, would help reduce the country’s disease burden, save lives and improve long-term public health outcomes.
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