A heated debate erupted at the Senate on Thursday as lawmakers, federal ministries, and industry groups clashed over a proposal to sharply increase excise duties on carbonated sugar-sweetened beverages.
The confrontation unfolded during a public hearing convened by the Senate Committees on Finance and Customs to consider a bill that would levy a percentage-based tax per litre of SSBs.
Lawmakers argued that raising the existing N10/litre tax is necessary to discourage excessive sugar consumption and boost funding for public health initiatives.
The session, chaired by Senator Sani Musa (Niger East), highlighted deep divisions among stakeholders.
While health advocates and medical associations backed the measure, industry players pushed back vigorously.
The Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, threw his ministry’s weight behind the bill, describing it as a critical step toward safeguarding the country’s future health financing.
“We commend the Senate for proposing a bill that increases the excise tax on sugar-sweetened beverages and earmarks part of the revenue for health promotion,” Pate said. “This demonstrates political will, aligns fiscal policy with public health goals, and provides sustainable financing for prevention programmes—essential steps toward achieving universal health coverage.”
Pate urged the Senate to go further by increasing the SSB tax from N10 per litre to at least 20 per cent of the retail price, in line with World Health Organisation guidance.
He also recommended that at least 40 per cent of the revenue be reinvested into programmes targeting diet-related illnesses, including diabetes and hypertension.
“Failure to act now will saddle Nigeria with an overwhelming disease burden in the next 10 to 20 years,” Pate warned. “Prevention is far more cost-effective than cure.”
Health-sector groups, including the Nigeria Cancer Society and the Diabetes Association of Nigeria, voiced strong support for the bill.
But several economic stakeholders opposed the proposal.
The Manufacturers Association of Nigeria, the Ministry of Finance, and the Nigeria Employers Consultative Association cautioned that a higher tax could have unintended consequences.
Adeyemi Folorunsho, a director representing MAN, argued that the proposed hike could trigger job losses and disrupt growth in the beverage industry. He also challenged the assumption that SSB consumption is a major driver of diabetes and obesity in Nigeria.
“Contrary to popular belief, Nigeria has one of the lowest sugar consumption rates in the world—8.3 million kilogrammes compared with the 22.1 million kilogrammes expected,” Folorunsho said. He called on the Senate to adopt a “win-win approach” in shaping the legislation.
In his closing remarks, Senator Musa assured participants that the final law would balance public health goals with economic realities.
“The committees will carefully weigh all submissions before presenting a harmonised draft to the Senate,” he said. “Legislation presented to Nigerians will be fair, transparent, and people-oriented.”
Nigeria introduced the N10-per-litre SSB tax in 2022 to curb rising rates of obesity, diabetes, and other non-communicable diseases.
However, health experts argue that the levy is far below global standards and has had minimal impact on consumption.
Manufacturers, meanwhile, warn that the industry is still recovering from inflation, foreign exchange pressures, and declining consumer purchasing power.
They caution that higher taxes could lead to plant closures, job cuts, and lower government revenue.
The Senate’s push to amend the law has reignited a long-running clash between public health advocates and economic stakeholders.
punch.ng
FOLLOW US ON:
