Nigeria Senate Approves Price-Based Tax On Soft Drinks

The approval followed the adoption of the report on the Customs, Excise Tariff (Amendment) Bill, presented by the Chairman of the Senate Committee on Finance, Senator Sani Musa, on behalf of the Joint Committee on Finance, Customs, Excise and Tariff.

Under the new arrangement, the fixed ₦10 per litre charge on sugar-sweetened beverages will be replaced with a percentage-based levy, with the exact rate to be determined by the Minister of Finance in line with international standards and prevailing economic conditions.

Lawmakers explained that the previous flat-rate system, introduced years ago, had been weakened by inflation and was no longer effective in discouraging excessive sugar consumption or generating adequate fiscal returns in relation to rising health concerns.

As part of the reform, a portion of revenue from the new levy will be directed into a dedicated health fund intended to support disease prevention programmes, health awareness campaigns, primary healthcare services, and improved health insurance coverage for vulnerable Nigerians.

The Senate further expressed concern over the increasing prevalence of non-communicable diseases such as diabetes, hypertension, obesity, and cardiovascular conditions, noting their strong link to unhealthy diets and high consumption of sugary drinks.

Lawmakers maintained that the revised tax policy would serve a dual purpose of boosting government revenue while also acting as a public health intervention to reduce sugar intake and improve long-term health outcomes across the country.