The Senate on Tuesday approved a bill to redirect revenue from excise duties on sweetened, carbonated, and non-alcoholic beverages toward health programs and infrastructure. The amendment, sponsored by Senator Ipalibo Harry Banigo (Rivers West), passed second reading and was referred to the Committees on Finance, Commerce, and Health for further scrutiny.
Banigo, a medical doctor and former Deputy Governor of Rivers State, represented by Amos Yohanna, emphasized that the proposal is “not a new tax” but a strategic use of existing revenues to improve Nigerians’ wellbeing.
“This amendment is not merely fiscal in nature; it is a public health investment strategy that aligns taxation policy with our national health priorities,” she said. “It seeks to redirect part of the current excise revenue from sweetened beverages to fund preventive health programs and strengthen healthcare delivery at the grassroots.”
She noted that excessive sugar intake is a major driver of non-communicable diseases (NCDs) such as diabetes, obesity, hypertension, and heart disease, which account for more than 30 percent of deaths in Nigeria annually.
“While many of these diseases are preventable, government investment in public health remains inadequate,” Banigo said. “More than two decades after the Abuja Declaration, Nigeria has yet to meet the target of allocating 15 percent of its budget to health. With dwindling donor support and the exodus of health professionals, we must innovate within our fiscal system to secure sustainable funding for health.”
Banigo also pointed out that while sectors like education, defense, and technology already benefit from earmarked taxes, health has been left out. The bill aims to create a dedicated fund to support preventive programs, community healthcare infrastructure, wellness education in schools and workplaces, and early screening for lifestyle-related diseases.
She cited examples from South Africa, Mexico, and the United Kingdom, where similar excise tax allocations have improved public health outcomes and encouraged healthier choices.
“Every naira collected from health-risk products should directly contribute to protecting and improving public health,” Banigo said. “This approach will make Nigeria’s tax framework smarter, purposeful, and people-centered.”
Supporting the bill, Senator Idiat Adebule stressed it must not impose additional taxes on citizens, while Senate Whip Tahir Monguno noted it would help fill gaps left by declining donor aid.
However, some senators questioned whether legislation was necessary. Deputy Senate President Barau Jibrin said:
“You don’t need a bill to make these adjustments. It goes with fiscal policy, and that can be done by the Executive. Nigerians consume alcoholic drinks and sugar; taxing their profits can fund health programs. Let’s not waste time on things we don’t need.”
Despite the debate, the bill cleared second reading and is now under consideration by relevant committees, moving Nigeria a step closer to aligning taxation with public health priorities.