Professor Al Pate
**Finance Ministry, Manufacturers raise concerns
Nigeria’s push to curb rising noncommunicable diseases (NCDs) gained new momentum on Thursday as Minister of Health and Social Welfare, Prof. Ali Pate, joined civil society groups and medical advocates in calling on the Senate to overhaul the current Sugar-Sweetened Beverage (SSB) tax.
At a public hearing convened by the Senate Joint Committee on Finance, Customs and Excise, stakeholders urged lawmakers to replace the fixed ₦10 per litre excise duty with a stronger percentage-based (ad valorem) levy, and to legally earmark part of the revenue for public health programmes.
The hearing centered on a bill sponsored by Senator Ipalibo Harry Banigo seeking to amend Section 21(3) of the Customs and Excise Tariff Act to ensure a more effective SSB tax structure.
Representing Senate President Godswill Akpabio, Senator Adeniyi Adegbonmire (SAN) described the amendment as a timely intervention aligned with global best practices.
“This is not merely a fiscal proposal,” he said. “It is a public health investment strategy. The current ₦10 per litre excise is no longer realistic—not with today’s naira value, and certainly not given the cost of managing health challenges linked to sugary drink consumption.”
Health Minister Pate warned that Nigeria is facing a “public health crisis,” with diseases once considered rare—diabetes, stroke, obesity, and heart disease—now among leading causes of death.
He argued that the existing tax, introduced in 2021 when an average drink cost ₦150, has been severely weakened by inflation and no longer discourages consumption.
Pate urged the Senate to raise the levy to at least 20% of retail price and earmark no less than 40% of generated revenue for public health interventions.
“This is in the interest of 230 million Nigerians,” he said, adding that the reform could create a sustainable health financing stream and accelerate progress toward universal health coverage, citing successful examples such as the Philippines.
At the hearing, Corporate Accountability and Public Participation Africa (CAPPA) pushed for an even higher rate—50% of retail price, with a minimum floor of 20%.
CAPPA Executive Director Akinbode Oluwafemi said:
“To drive meaningful reduction in consumption, Nigeria must adopt a strong retail-price–based excise. We also recommend strict earmarking of revenues and a national monitoring and evaluation task force.”
Other supporting organisations included CISLAC, the Nigerian Cancer Society, Diabetes Society of Nigeria, National SSB Tax Coalition, Healthy Food Policy Vanguard, Nigerian Tobacco Control Alliance, and academics from Redeemer’s University.
Vice President of the Diabetes Society of Nigeria, Dr. Mansur Ramalan, said diabetes prevalence has risen to about 7%, warning that government inaction would worsen the burden. He dismissed concerns that higher taxes would harm revenue, insisting government earnings would “increase by 200%.”
However, the Ministry of Finance urged caution. Represented by Director of Technical Services Bashir Abdulkadir, the ministry argued that under Section 13 of the Act, only the president has the authority to vary excise rates.
It insisted that government must retain flexibility on fiscal policy, noting that a broader review covering SSBs and alcoholic beverages is already underway.
Representing MAN, Adeyemi Folorunsho warned that a higher tax could trigger job losses and argued that current data did not prove sugary drinks are driving diabetes or obesity levels in Nigeria.
Responding to the concerns, the Joint Committee maintained that the National Assembly has constitutional powers to amend laws and conduct public hearings. Committee Chair Sani Musa pledged that the final draft would reflect fairness, transparency, and the public interest.
“All submissions will be critically evaluated,” he said, adding that the committee’s report to the Senate would capture the broad national importance of the issue.