Senate Passes Bill To Boost Healthcare Funding, Fight NCDs

The Senate has passed the Customs, Excise Tariff, etc. (Consolidation) Act (Amendment) Bill, 2025, aimed at strengthening healthcare financing and addressing the rising burden of non-communicable diseases (NCDs) in Nigeria.

The bill, sponsored by Senator Ipalibo Harry Banigo, Chairman of the Senate Committee on Health (Secondary and Tertiary), scaled Third Reading during plenary on Wednesday in Abuja.

Lawmakers said the legislation represents a key step in improving access to quality healthcare and ensuring sustainable funding for the country’s health sector, especially amid growing health challenges linked to lifestyle-related diseases.

The bill seeks to amend Section 21(3) of the existing Customs, Excise Tariff Act by replacing the fixed ₦10 per litre excise duty on sugar-sweetened beverages with a percentage-based levy tied to retail prices.

It also provides a framework for channeling revenue generated from the levy into health promotion, disease prevention, primary healthcare development, and expanded health insurance coverage for vulnerable Nigerians.

Senator Banigo described the legislation as a strategic public health intervention designed to save lives and strengthen long-term healthcare financing.

“This legislation is fundamentally about saving lives, preventing disease, and securing the future of healthcare financing in Nigeria,” she said.

“As a medical doctor and public health advocate, I have witnessed firsthand the devastating impact of preventable non-communicable diseases on Nigerian families.”

She added that the bill offers an evidence-based approach to encouraging healthier consumption patterns while generating resources to support the health system.

The Senate noted that Nigeria is witnessing a steady rise in diabetes, hypertension, obesity, and cardiovascular diseases, which are increasingly straining households and the national health system.

A committee report presented to lawmakers said the existing ₦10 per litre excise duty had been eroded by inflation, weakening its effectiveness as both a public health deterrent and revenue source.

It further referenced international examples from countries such as Mexico, South Africa, and the United Kingdom, where sugar taxes have helped reduce consumption and improved public health outcomes.

The legislation also aligns with efforts to reduce Nigeria’s dependence on external health funding by boosting domestic resource mobilisation for healthcare investment.

It is expected to generate dedicated funding for preventive healthcare programmes, health infrastructure development, and expanded access to health insurance for low-income Nigerians.

Public health stakeholders, including government agencies, civil society groups, and industry representatives, reportedly supported the bill during consultations.

With Senate approval secured, the legislation now advances as part of broader reforms aimed at strengthening Nigeria’s healthcare financing framework and improving national health outcomes.