CAPPA Sounds Alarm, Urges Reps To Fast-Track Sugary Drinks Tax Bill

CAPPA Sounds Alarm, Urges Reps To Fast-Track Sugary Drinks Tax Bill

For millions of Nigerian families already struggling with the rising cost of healthcare, excessive consumption of sugary drinks could add another burden, with preventable conditions such as obesity, diabetes and other non-communicable diseases threatening household finances and public health.

Against this backdrop, the Corporate Accountability and Public Participation Africa (CAPPA) has urged the House of Representatives to urgently pass the Sugar-Sweetened Beverage (SSB) Tax Amendment Bill, warning that Nigeria’s existing tax on sugary drinks has become too insignificant to discourage excessive consumption.

The organisation made the call in a statement on Sunday, November 15, urging lawmakers to expedite concurrence on the Customs, Excise Tariffs, etc. (Consolidation) Act (CETA) Amendment Bill, which has already been passed by the Senate.

The proposed amendment seeks to replace the existing fixed excise duty of N10 per litre on non-alcoholic, carbonated and sweetened beverages with a percentage-based levy tied to retail prices.

CAPPA said the current arrangement, introduced through the Finance Act of 2021, has lost much of its effectiveness because the N10 duty has remained unchanged despite rising inflation and the sharp increase in beverage prices.

According to the organisation, a 35cl bottle of a sugar-sweetened beverage that sold for about N80 when the law came into effect in 2021 now costs approximately N500.

It explained that the existing duty translates to just N3.30 on a standard 33cl bottle, representing less than one per cent of its retail price.

CAPPA’s Executive Director, Akinbode Oluwafemi, said the fixed levy had effectively weakened government’s ability to use taxation as a public health tool.

“A fixed duty of N10 per litre loses value as prices rise,” Oluwafemi said, arguing that a percentage-based levy would restore fiscal flexibility and make the tax more responsive to changing market conditions.

He added that manufacturers could easily absorb the existing duty without increasing prices or reformulating their products, thereby undermining its public health objective.

CAPPA maintained that the proposed amendment aligns with the Federal Government’s ongoing fiscal and tax reform agenda, noting that several government institutions supported the reform during the Senate’s public hearing on November 27, 2025.

They include the Federal Ministries of Health and Social Welfare, and Finance, the Presidential Tax Reform Committee and the Nigeria Customs Service.

The organisation also linked the proposed reform to the growing financial burden of non-communicable diseases in Nigeria.

It cited estimates that NCDs account for nearly 30 per cent of annual deaths in the country, while households spend approximately N1.9 trillion out of pocket each year treating diabetes and related illnesses.

CAPPA argued that dedicating part of the revenue from a strengthened sugary drinks tax to health promotion and disease prevention would support efforts to reduce this burden and strengthen the country’s underfunded healthcare system.

Addressing concerns raised by industry stakeholders, the organisation stressed that the proposed tax was not a general sugar tax and would not affect domestic sugar production.

Rather, it specifically targets non-alcoholic, carbonated and sweetened beverages, which CAPPA described as products that provide liquid calories with little or no nutritional value and contribute to rising cases of obesity and Type 2 diabetes.

Oluwafemi said an effective retail-price levy, with a benchmark of 50 per cent and a minimum floor of 20 per cent, would help protect Nigerian families from preventable chronic diseases.

He urged the House of Representatives to follow the Senate’s example and pass the amendment without further delay.

“The Senate has already demonstrated patriotic leadership by passing this vital legislation.

We urge the Speaker and honourable members of the House of Representatives to stand with millions of Nigerian families, reject corporate scaremongering, and expedite concurrence on the CETA Amendment Bill as a lasting investment in the health and productivity of our nation,” he said.

The bill, passed by the Senate on June 4, 2026, is awaiting concurrence by the House of Representatives before it can be transmitted to President Bola Tinubu for assent.