The National Health Insurance Authority (NHIA) has called for stronger coordination across government, the legislature, and the private sector to turn health-tax proposals into effective sources of healthcare financing and tools for reducing the rising burden of non-communicable diseases (NCDs) in Nigeria. This call was made by the Director-General and Chief Executive Officer of the NHIA, Dr. Kelechi Ohiri, at a National Stakeholder Co-Creation Workshop on Realising Health Taxes for Sustainable Health Financing and Curbing Non-Communicable Diseases in Nigeria.
The workshop, held in Abuja, focused on moving health-tax reforms beyond policy discussions to implementation, with particular attention to sugar-sweetened beverages (SSBs), tobacco, and alcohol. According to Dr. Ohiri, health-tax reform requires the leadership of the Ministry of Finance, lawmakers, private-sector stakeholders, civil society, the media, and other relevant institutions. He emphasized that health-tax reform is not the mandate of any single sector or ministry.
Nigeria faces a dual challenge of persistent infectious diseases and maternal health concerns alongside a growing burden of NCDs associated with the consumption of products such as sugary drinks, tobacco, and alcohol. Dr. Ohiri noted that health taxes could address both challenges by discouraging harmful consumption while creating additional and more predictable domestic resources for healthcare.
The NHIA boss said the country is already at an important stage in the development of SSB taxation, with the Senate having passed a bill seeking to strengthen the existing SSB tax framework. The bill is awaiting concurrence by the House of Representatives. The proposed reforms would seek to channel part of the resulting revenue towards health promotion, disease prevention, and primary healthcare.
However, Dr. Ohiri cautioned that legislation alone would not guarantee success, saying Nigeria must establish the institutional, fiscal, and administrative mechanisms required to implement the reforms effectively. He identified political leadership, institutional capacity, and robust public financial management as critical to ensuring transparency in revenue collection and utilization.
The workshop also placed emphasis on the potential of health taxes to support health insurance coverage. Dr. Ohiri cited the Philippines as an example of a country that has used health-tax revenues to support the expansion of health insurance. Stakeholders also identified the need to strengthen taxation of tobacco and alcohol through further evidence, advocacy, and policy engagement.
The Health Tax Task Team, established as an action-oriented platform, is expected to provide strategic guidance, strengthen coordination among institutions, engage policymakers, and support the transition from policy design to implementation. The World Health Organisation has stressed that successful health-tax reforms require more than technical evidence, noting that policymakers must also understand the institutional and stakeholder environment in which such taxes are negotiated and implemented.
Key points
- Health taxes can address both infectious diseases and NCDs by discouraging harmful consumption while creating additional domestic resources for healthcare.
- Nigeria needs coordinated action across government, legislature, and private sector to implement health-tax proposals and curb NCDs.
- Successful health-tax reforms require more than technical evidence, including understanding the institutional and stakeholder environment.
