The Senate yesterday passed for the second reading a Bill seeking to amend the Customs, Excise, Tariffs, etc, Act to earmark revenue from excise duties on non-alcoholic, carbonated, and sweetened beverages for health-related programmes and infrastructure.
The Bill, sponsored by Senator Ipalibo Harry Banigo (Rivers West), aims to make Nigeria’s taxation system more responsive to the nation’s health needs by ensuring that part of the existing sugar-sweetened beverage (SSB) tax directly funds primary healthcare and preventive health initiatives.
Leading the debate on the Bill, Banigo, a medical doctor and former Rivers State deputy governor, represented by Senator Amos Yohanna, said the proposal was not about introducing a new tax but about putting existing revenues to better use.
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“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 programmes and strengthen healthcare delivery at the grassroots…”
Banigo explained that excessive sugar consumption has become a major cause of non-communicable diseases (NCDs), such as diabetes, obesity, hypertension, and heart disease, which now account for more than 30 per cent of annual deaths in Nigeria.
The lawmaker regretted that despite the 2001 Abuja Declaration, where African leaders pledged to allocate 15 per cent of national budgets to health, Nigeria had not met the target.
“With dwindling donor support and the migration of health professionals, we must innovate within our fiscal system to secure sustainable domestic funding for health,” she added.
According to her, while several sectors, including education, defence, and technology, already benefit from dedicated levies, the health sector has been largely excluded.
“Public health is conspicuously missing from this framework. This Bill seeks to correct that by making health a beneficiary of excise revenues, particularly from products that contribute to poor health outcomes,” Banigo said.
If enacted, the senator said, the amendment would create a dedicated fund for preventive health programmes, community-level healthcare infrastructure, wellness education in schools and workplaces, and early screening for lifestyle-related diseases.
She cited successful global examples in South Africa, Mexico, and the United Kingdom, where earmarking excise taxes for health had improved public health outcomes and encouraged healthier consumption patterns.
“This approach will make Nigeria’s tax framework smarter, more purposeful, and people-centered,” Banigo said.
“Every naira collected from health-risk products should directly contribute to protecting and improving public health.”
Senator Idiat Adebule Oluranti (APC, Lagos West) supported the Bill but cautioned that it must not impose any additional tax burden on Nigerians.
Senate Chief Whip Mohammed Tahir Monguno also backed the Bill, stating that the initiative could fill the funding gap created by the withdrawal of donor support to the health sector.
But some senators argued that the amendment was unnecessary, suggesting that such fiscal adjustments could be handled by the Executive.
Deputy Senate President Barau Jibrin said: “You don’t need a bill to make these adjustments. It goes with fiscal policy and can be done by the Executive.
“Nigerians like alcoholic drinks and sugar; their profits should be taxed and the proceeds used to help Nigerians. Let’s not waste time on things that don’t require legislation.”
Despite the concerns, the Bill was approved for a second reading and referred to the Committees on Finance, Trade and Investment and Health for further legislative consideration and to report back in four weeks.