Get Guardian on GoogleCorporate Accountability and Public Participation Africa (CAPPA) has urged the House of Representatives to expedite action on the Customs, Excise Tariffs, etc. (Consolidation) Act (CETA) Amendment Bill, popularly known as the Sugar-Sweetened Beverage (SSB) Tax Amendment Bill, to strengthen public health protection and align Nigeria’s fiscal framework with ongoing tax reforms.
The organisation said the bill, which was passed by the Senate on June 4, 2026, was awaiting concurrence by the House before being transmitted to President Bola Tinubu for assent.
In a statement signed by its Media and Communications Officer, Robert Egbe, CAPPA said the amendment would address weaknesses in the Finance Act 2021, which introduced Section 21(3) of CETA and imposed a fixed excise duty of N10 per litre on non-alcoholic, carbonated and sweetened beverages.
It argued that the fixed levy had lost much of its value because of inflation and rising retail prices, making it ineffective as a public health measure.
CAPPA noted that when the Finance Act 2021 took effect, a 35cl bottle of sugar-sweetened beverage sold for about N80, compared with approximately N500 currently.
According to the organisation, the N10-per-litre duty translates to about N3.30 on a standard 33cl bottle, representing less than one per cent of its current retail price.
Speaking on the need for the amendment, CAPPA’s Executive Director, Akinbode Oluwafemi, said the fixed levy had limited the government’s ability to use taxation effectively to discourage excessive consumption of sugary drinks.
He said replacing the fixed duty with a percentage-based levy tied to retail prices would restore fiscal flexibility and ensure that the tax retained its intended public health impact.
Oluwafemi added that manufacturers could easily absorb the existing levy without increasing prices or reformulating their products, thereby undermining its effectiveness in reducing consumption.
CAPPA said the proposed amendment was consistent with the Federal Government’s fiscal policy and tax reform agenda, adding that it enjoyed support from several government institutions.
It cited submissions made at the Senate’s public hearing on November 27, 2025, where the Federal Ministries of Health and Social Welfare and Finance, the Presidential Tax Reform Committee and the Nigeria Customs Service, among others, supported the proposed reform.
The organisation also linked the proposed tax to President Tinubu’s commitment under the Renewed Hope Agenda to use consumption taxes to sustainably finance health sector reforms.
It said non-communicable diseases accounted for nearly 30 per cent of annual deaths in Nigeria, while households spent about N1.9 trillion out of pocket annually treating diabetes and related illnesses.
CAPPA maintained that allocating part of the revenue from a strengthened SSB tax to health promotion and disease prevention would help reduce the burden on households and the country’s underfunded healthcare system.
Addressing concerns raised by industry stakeholders, the organisation clarified that the proposed levy was not a general sugar tax and would not cover domestic sugar production.
It explained that the amendment specifically targeted non-alcoholic, carbonated and sweetened beverages, which it described as sources of liquid calories with little or no nutritional value and associated with increased risks of obesity, elevated blood glucose and Type 2 diabetes.
CAPPA also rejected claims that the proposed tax would undermine Nigeria’s domestic sugar industry, describing such arguments as an attempt to divert attention from the public health objectives of the legislation.
Quoting guidance from the World Health Organisation and the Bloomberg Task Force on Fiscal Policy for Health, Oluwafemi advocated a retail-price levy benchmark of 50 per cent, with a minimum floor of 20 per cent.
He said such a measure would help protect families from preventable chronic diseases while reducing pressure on the healthcare system.
Commending the Senate for passing the bill, Oluwafemi urged the Speaker and members of the House of Representatives to expedite concurrence.
He said the legislation represented a long-term investment in the health, productivity and well-being of Nigerians.
