Senate raises sugar tax, establishes health fund for diseases

The Senate on Wednesday approved a new excise duty regime on sugar-sweetened beverages.
The upper chamber also endorsed the creation of a dedicated funding stream to strengthen public health interventions nationwide. This is in a move aimed at curbing rising cases of non-communicable diseases.
The decision followed the Joint Committee on Finance and Customs, Excise and Tariff’s consideration and adoption of the report on the Customs, Excise Tariff, etc. (Amendment) Bill during plenary.
The report was presented by the chairman of the Senate Committee on Finance, Sani Musa.
He said that under the new framework, the existing N10-per-litre excise duty on sugar-sweetened beverages would be replaced by a percentage-based levy tied to retail prices, to be determined by the finance minister in line with global best practices.
Mr Musa noted that the current flat-rate tax has been significantly eroded by inflation and is no longer sufficient to discourage excessive consumption or generate a meaningful fiscal impact.
Mr Musa expressed concern over the rising prevalence of non-communicable diseases such as diabetes, obesity, hypertension and cardiovascular conditions, which are increasingly linked to high sugar consumption and unhealthy dietary habits.
He further observed that Nigeria’s healthcare system remains underfunded and heavily dependent on out-of-pocket spending, leaving many citizens exposed to financial hardship and limited access to care.
The Senate thereafter directed that the finance minister determine an appropriate levy structure consistent with global standards and ensure that implementation aligns with Nigeria’s broader health and fiscal goals.
It also recommended stronger enforcement mechanisms for excise collection, continuous stakeholder engagement, and complementary measures such as nutrition awareness campaigns.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
![U.S. Mission[Credit: X.com]](https://gazettengr.com/wp-content/uploads/images-78-3.jpeg)
World
U.S. issues security alert to Americans worldwide as Iran kills two soldiers
The U.S. government issued a warning to all Americans worldwide amid the escalating war against Iran.

Heading 3
Tinubu’s scorecard is 139 million Nigerians in poverty; he should resign, not seek re-election: ADC
“The evidence of 139 million people living in poverty and 17 million at risk of starvation is President Tinubu’s scorecard,” the party said.

Lagos
Lagos govt working to tackle flooding, says SSG
She said the government was assessing critical drainage channels and other vulnerable locations to strengthen ongoing flood control measures.

States
Three killed, four injured in Anambra road crash: FRSC
The FRSC said the accident occurred on Friday along the Nnobi–Agulu–Awka road.

Politics
2027: Group asks ADC, Atiku to drop Amaechi as vice-presidential candidate
The group accused Mr Amaechi of desperation, saying that he lacked the grassroots strength required to win the election.
![Jens Spahn. [PHOTO CREDIT: ZDF]](https://gazettengr.com/wp-content/uploads/Jens-Spahn.jpg)
Heading 4
German lawmaker resigns after backlash for welcoming child through surrogacy
The 46-year-old politician and his party, the Christian Democratic Union (CDU), had backed a ban on surrogacy.





