In a major legislative victory for public health and sustainable healthcare financing in Nigeria, the Nigerian Senate today passed the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill, 2025 (SB.713), sponsored by Senator Dr Ipalibo Harry Banigo, DSSRS, the Chairman of the Senate Committee on Health (Secondary and Tertiary) following its successful Third Reading on the floor of the Senate.

This landmark legislation is one of the most consequential public health reforms in recent years, positioning Nigeria to address the growing epidemic of non-communicable diseases and unlock sustainable domestic resources to strengthen healthcare across the country.

The Bill amends Section 21(3) of the Customs, Excise Tariff, etc. (Consolidation) Act by replacing the current fixed excise duty of ₦10 per litre on sugar-sweetened beverages with a more responsive and effective levy calculated as a percentage of the retail price. Crucially, the legislation also creates a framework for directing part of the revenue generated toward health promotion, disease prevention, primary healthcare strengthening, and support for vulnerable populations through health insurance coverage.

Speaking on the significance of the passage, Senator Banigo described the Bill as a bold intervention aimed at protecting the health of Nigerians while ensuring sustainable financing for critical health services.

“This legislation is fundamentally about saving lives, preventing disease, and securing the future of healthcare financing in Nigeria. As a medical doctor and public health advocate, I have witnessed firsthand the devastating impact of preventable non-communicable diseases on Nigerian families. This Bill provides a practical, evidence-based solution that promotes healthier choices while generating much-needed resources to strengthen our healthcare system.”

The passage of the Bill comes at a critical time when Nigeria is experiencing an alarming rise in diabetes, obesity, hypertension, cardiovascular diseases, and other non-communicable diseases linked to excessive sugar consumption and unhealthy dietary habits.

According to findings presented before the Joint Senate Committee on Finance, Customs (Excise and Tariff), and the Senate Committee on Health (Secondary & Tertiary), non-communicable diseases now account for a significant proportion of illness and deaths in Nigeria, placing enormous pressure on households and the national healthcare system.

The Committee further observed that the existing ₦10 per litre excise duty has been substantially eroded by inflation and no longer provides a sufficient public health deterrent or sustainable revenue source.

In its report, the Joint Committee noted that international evidence from countries such as South Africa, Mexico, and the United Kingdom demonstrates that properly structured sugar-sweetened beverage taxation can reduce unhealthy consumption patterns, encourage product reformulation by manufacturers, and improve population health outcomes.

For Senator Banigo, the Bill forms part of a broader vision to transition Nigeria from dependence on external health funding toward stronger domestic resource mobilisation mechanisms capable of supporting long-term healthcare investments.

The legislation is expected to create a dedicated pathway through which revenues generated from products associated with health risks can be reinvested into preventive health programmes, health promotion initiatives, primary healthcare infrastructure, and expanded health insurance coverage for poor and vulnerable Nigerians.

Public health experts have hailed the Bill as a pioneering example of health-sensitive fiscal policy that aligns taxation with national health priorities.

Throughout the legislative process, the Bill attracted broad engagement from stakeholders, including the Federal Ministry of Finance, the Federal Ministry of Health and Social Welfare, the Nigeria Customs Service, the National Health Insurance Authority, civil society organisations, public health advocates, academia, and industry representatives.

The Joint Senate Committee on Finance, Customs (Excise and Tariff), and the Senate Committee on Health (Secondary & Tertiary), ultimately concluded that strengthening excise taxation on sugar-sweetened beverages would advance both fiscal and public health objectives by discouraging excessive sugar consumption while generating additional resources for critical healthcare interventions.