CAPPA COMMENDS SENATE ON SSB TAX BILL, PUSHES HOUSE OF REPS FOR QUICK PASSAGE

CAPPA COMMENDS SENATE ON SSB TAX BILL, PUSHES HOUSE OF REPS FOR QUICK PASSAGE
By Prince Benson Davies

Corporate Accountability and Public Participation Africa, CAPPA, has welcomed the Senate’s passage of a bill to reform Nigeria’s tax on Sugar-Sweetened Beverages, describing it as a timely public health intervention. The bill proposes replacing the current flat rate of 10 naira per litre with a percentage-based levy tied to retail price, and it also sets aside part of the revenue for health promotion and disease prevention programmes.

CAPPA said the decision by the Senate reflects growing recognition of the health burden linked to excessive sugar consumption. The organisation praised Senator Ipalibo Banigo, sponsor of the bill, for championing fiscal policies that place public health at the centre of economic planning.

In a statement on Wednesday, CAPPA Executive Director Akinbode Oluwafemi said the Senate’s action shows willingness to respond to Nigeria’s rising cases of non-communicable diseases. He urged the National Assembly to complete the legislative process quickly so that the revised tax can take effect and begin to deliver health benefits.

The group highlighted Senator Banigo’s record on health legislation, noting her role in the passage of the National Health Act Amendment Bill in April 2026 which increased funding for the Basic Health Care Provision Fund from 1 percent to 2 percent of consolidated revenue. CAPPA stated that dedicating a portion of SSB tax revenue will further strengthen resources available for preventive care and health system improvements.

CAPPA stressed that Nigeria is facing a growing crisis of diet-related illnesses such as Type 2 diabetes, hypertension, heart disease, obesity, and dental conditions. According to public health data referenced by the organisation, nearly one in three deaths in Nigeria is now attributed to non-communicable diseases, while more than 11 million Nigerians live with diabetes. The strain on families and on health facilities continues to rise.

The organisation argued that sugar-sweetened beverages are a major contributor to the problem due to aggressive marketing and high consumption, especially among young people. It said Nigeria’s existing 10 naira-per-litre tax, introduced under the Finance Act, is too low to change buying behaviour or improve health outcomes. Inflation has also reduced the impact of the fixed rate since it was introduced.

CAPPA explained that a price-based tax, also known as an ad valorem levy, aligns with recommendations from the World Health Organization and other global health bodies. Such a structure increases retail prices more effectively and keeps the tax impactful over time, unlike fixed amounts that lose value. The group added that the proposed earmarking of revenue for health promotion will help fund education, preventive services, and access to essential care.

While commending the Senate, CAPPA said transparency must guide how the earmarked funds are managed. It called for clear reporting and public oversight to ensure resources reach intended health programmes. The organisation also urged the House of Representatives to concur with the Senate and forward the bill for presidential assent without delay.

Akinbode stated that Nigeria is dealing with a preventable health crisis driven by poor diets and weak regulation. He said strengthening the SSB tax is both a fiscal and a health intervention that can reduce disease burden and protect future generations. CAPPA concluded that lawmakers have taken an important step and must now complete the process to turn the reform into law.