Advisory on the Amendment of the Sugar-Sweetened Beverage (SSB) Tax: Impact on Governance, Revenue, and Development
Working Paper
Nigeria currently faces a dual crisis: a burgeoning fiscal deficit and a non-communicable disease (NCD) epidemic, with over 12 million citizens living with diabetes. While the 2021 Finance Act introduced a ₦10-per-litre excise duty on SSBs, this fixed rate has been eroded by 2024–2026 inflationary pressures, now representing less than 5% of the retail price, well below the WHO-recommended 20% (World Health Organization, 2022). This brief advises the National Assembly to transition from the current "flat-rate" model to an Ad-Valorem (Percentage-Based) Model or a Tiered Sugar-Content Model. Such a shift is essential to safeguard public health, ensure revenue elasticity, and align with global success stories in fiscal health policy.