The Healthcare Federation of Nigeria (HFN) has applauded the passage of a pro-health tax reform bill by the Nigerian Senate, describing the development as a landmark step towards strengthening sustainable healthcare financing and advancing better health outcomes for Nigerians.
The top private healthcare group, in a statement provided to BusinessDay, lauded Ipalibo Harry Banigo, chairman of the Senate Committee on Health, for sponsoring and championing the legislation, as well as the leadership and members of the Senate for advancing a reform that aligns fiscal policy with public health priorities.
The Customs, Excise Tariff, Etc. (Consolidation) Act (Amendment) Bill, 2025 introduces a shift from a fixed rate on sugar-sweetened beverages (SSB) to a percentage-based tax system. It also provides a legal framework for a percentage of the SSB tax generated to be channelled specifically to healthcare, instead of being lumped into the general federation account.
Njide Ndili, president of the association said the bill marks a key milestone for Nigeria’s health sector and for the broader goal of achieving Universal Health Coverage. “For many years, HFN and numerous public health stakeholders have advocated not only for the introduction of pro-health taxes, but also for the strategic allocation of the revenues generated from these taxes towards strengthening healthcare delivery, expanding health coverage and protecting vulnerable populations. We commend Senator Banigo and the Senate for advancing a reform that recognizes the important connection between fiscal policy and public health,” she said.
The bill, which seeks to replace the current flat-rate excise duty on sugar-sweetened beverages with a retail price-based levy and establish a framework for channeling a portion of the proceeds towards health promotion and healthcare financing, represents a significant milestone in Nigeria’s efforts to address the growing burden of non-communicable diseases while strengthening domestic resource mobilisation for health.
Nigeria continues to face increasing rates of diabetes, obesity, cardiovascular diseases, cancers and other non-communicable diseases, which impose significant social and economic costs on households, businesses and government. Globally, evidence has shown that well-designed pro-health taxes can help reduce harmful consumption patterns while generating additional resources to support stronger and more resilient health systems.
The Federation noted that the passage of the bill reflects years of sustained advocacy by health sector stakeholders who have consistently argued that revenues generated from sugar-sweetened beverage taxes and other pro-health taxes should be strategically ring-fenced and invested in strengthening Nigeria’s healthcare system.
Since 2020, HFN has publicly advocated for the introduction and strengthening of pro-health taxes on products that contribute significantly to the burden of preventable diseases. The Federation has consistently maintained that proceeds from such taxes should be ring-fenced and directed towards healthcare financing, including support for primary healthcare, health insurance coverage, healthcare infrastructure, health promotion and services for vulnerable populations.
As part of this advocacy, HFN developed policy recommendations calling for the ring-fencing of revenues from sugar-sweetened beverage taxes for the healthcare sector and engaged policymakers on the need to leverage such revenues to strengthen Nigeria’s health system.
In 2022, HFN participated in a national Health Financing Policy Dialogue on Pro-Health Tax Implementation convened by PharmAccess in partnership with Nigeria Health Watch and the World Bank. The dialogue brought together representatives from government, the private sector, development partners and civil society to explore sustainable pathways for healthcare financing, accelerate progress towards Universal Health Coverage, and discuss effective implementation frameworks and equitable allocation of pro-health tax revenues.
HFN also commends the contributions of its advocacy and technical partners over the years, including PharmAccess, Nigeria Health Watch, the World Bank, and stakeholders within the Federal Ministry of Health and Social Welfare and the Federal Ministry of Finance. The Federation particularly recognizes the contributions of health financing experts, including Dr. Olumide Okunola of the World Bank, whose efforts, alongside those of many other stakeholders, have helped sustain national conversations around pro-health taxation and healthcare financing reform.
The Federation believes that the successful implementation of the legislation presents a unique opportunity to expand investments in primary healthcare, strengthen health promotion initiatives, improve financial protection for vulnerable populations, and accelerate Nigeria’s progress towards Universal Health Coverage.
As the umbrella body representing private sector healthcare stakeholders in Nigeria, HFN remains committed to supporting evidence-based policies, sustainable healthcare financing mechanisms and collaborative solutions that strengthen Nigeria’s healthcare system and improve health outcomes for all Nigerians.
