Stakeholders have expressed sharply contrasting opinions on the proposed amendment to the Customs and Excise Tariff (Consolidation) Act during a public hearing convened by the Senate Committees on Finance and Customs last week.
The amendment seeks to raise the current N10 per litre excise duty on sugar-sweetened beverages (SSBs) to at least 20 percent of the retail price, in line with recommendations by the World Health Organisation (WHO). It also proposes that part of the revenue generated from the tariff be dedicated to health promotion and disease-prevention programmes.
Supporters of the bill argue that a higher excise tax will help reduce the consumption of sugary drinks among Nigerians and improve overall public health.
However, manufacturers have urged lawmakers to tread carefully, warning that a steep increase in SSB taxes could result in job losses within the manufacturing sector. Presenting the position of the Manufacturers Association of Nigeria (MAN), Mr. Adeyemi Folorunsho dismissed claims linking Nigerians’ consumption of sugary drinks to the growing prevalence of diabetes, obesity, and related illnesses.
According to him, “Nigeria has one of the lowest rates of sugar consumption globally — 8.3 million kilogrammes compared to the expected 22.1 million kilogrammes.” He called on the Senate committees and relevant stakeholders to consider a balanced approach that protects both public health and industry interests.
The Federal Ministry of Health, represented by the Minister, Prof. Ali Pate, threw its weight behind the proposed amendment, describing it as a forward-looking and evidence-based step toward improving health financing.
“We commend the Senate for proposing a bill that seeks to increase the excise tax on sugar-sweetened beverages and earmark part of the revenue for health promotion,” he said. “This action reflects strong political will, aligns fiscal policy with public health objectives, and provides sustainable funding for preventive programmes — all of which are crucial to achieving universal health coverage.”
