Senate defends SSB Tax Bill, seeks ring-fenced revenue

National Assembly

 

 

…As Coalition Pushes for House Concurrence

Chairman of the Senate Committee on Health (Secondary and Tertiary Medical Services), Senator Ipalibo Banigo, has defended the Senate’s passage of the Sugar-Sweetened Beverages (SSB) Tax Bill, saying the legislation is designed to combat the growing burden of non-communicable diseases (NCDs) while creating a sustainable source of funding for Nigeria’s healthcare system.

Banigo, who sponsored the bill recently passed by the Senate, said the proposed law seeks to discourage excessive consumption of sugary drinks and ensure that part of the revenue generated is dedicated to health promotion, disease prevention and primary healthcare. The bill is currently awaiting concurrence by the House of Representatives.

Speaking while receiving members of a coalition of public health organisations in Abuja, the senator said diseases such as diabetes, hypertension, obesity, coronary heart disease and stroke continue to place enormous pressure on Nigeria’s fragile healthcare system while draining the finances of affected families.

“Non-communicable diseases have been draining the already fragile health sector and the pockets of Nigerians,” Banigo said, describing the legislation as an investment in both national health and economic development.

“The SSB Tax Bill is not just a public health intervention; it is a very important domestic health financing option Nigeria needs at this time. It is an investment in national healthcare and national development,” she added.

Drawing on her experience as a medical doctor and consultant dermatologist, Banigo said the increasing prevalence of lifestyle-related diseases underscores the need to prioritise prevention over treatment.

She maintained that proceeds from the proposed levy must be ring-fenced to fund health promotion campaigns, preventive healthcare, cancer screening, disease prevention programmes and the strengthening of primary healthcare services.

“The revenue must be ring-fenced for health promotion, preventive care and primary healthcare. That is how Nigerians will see the direct benefits of this policy,” she said.

Banigo credited the Coalition for Healthy Food Advocacy and the National Sugar-Sweetened Beverages Tax Coalition (NSSBTC) with providing the research, evidence and sustained advocacy that helped shape the legislation.

“You started the work. You gave us the background, the data and the evidence. The Nigerian people and the health sector should thank you for this achievement,” she told the coalition.

She also noted that extensive consultations involving the Federal Ministries of Health and Finance, the Nigeria Customs Service and other stakeholders helped build broad consensus around the bill despite concerns from some commercial interests.

Earlier, Executive Director of Corporate Accountability and Public Participation Africa (CAPPA), Mr. Akinbode Oluwafemi, urged Banigo to use her influence to secure speedy concurrence by the House of Representatives so the legislation could proceed for harmonisation and presidential assent.

Although the Senate has passed the bill, he noted that the legislative process would only be completed after the House approves its version.

Oluwafemi disclosed that Nigeria’s SSB tax initiative recently received recognition at a health financing conference in Kenya, where it was highlighted as an important reform for strengthening domestic healthcare financing across Africa.

He appealed to Banigo to engage the Senate President and the leadership of the House of Representatives to ensure the bill is fast-tracked before legislative activities slow ahead of the election season.

“Like Oliver Twist, we cannot stop asking for more. We need your continued support to ensure Nigeria gets this right,” he said.

The coalition, which comprises more than 80 civil society and professional organisations, said its visit was to appreciate the Senate for passing the bill and to seek continued legislative support until it is fully enacted.

The proposed legislation seeks to amend the Customs and Excise Tariffs (Consolidation) Act, 2004 by replacing the existing ₦10-per-litre excise duty on non-alcoholic, carbonated sugar-sweetened beverages with a levy calculated as a percentage of the retail price. According to the Senate, the new model is intended to keep the tax effective despite inflation, encourage manufacturers to reduce sugar content in their products and provide additional resources for tackling non-communicable diseases, which account for an estimated 26 to 30 per cent of deaths in Nigeria.

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