The National Health Insurance Authority and the Senate of Nigeria have jointly called for stronger health tax reforms in the country. This call was made at a National Stakeholder Co-creation Workshop on Realising Health Taxes for Sustainable Health Financing and Curbing Non-Communicable Diseases, held in Abuja. The workshop aimed to promote sustainable healthcare financing, expand health insurance coverage, and reduce the growing burden of non-communicable diseases.
According to Dr. Kelechi Ohiri, Director-General of the National Health Insurance Authority, health tax reform requires collaboration among various stakeholders, including government ministries, lawmakers, the private sector, civil society organisations, and the media. Ohiri noted that Nigeria is grappling with infectious diseases and maternal mortality, while also facing an increasing burden of non-communicable diseases associated with the consumption of sugar-sweetened beverages, tobacco, and alcohol.
Dr. Ohiri stated that health taxes offer a promising strategy for addressing both challenges, describing them as public health interventions capable of influencing consumption patterns and generating domestic resources for healthcare. He disclosed that the Senate had passed the Sugar-Sweetened Beverage Tax Bill, which is awaiting concurrence by the House of Representatives. The proposed reforms seek to strengthen the existing tax framework and allocate a portion of resources directly to health promotion, disease prevention, and primary healthcare.
Senator Ipalibo Banigo, Chairman of the Senate Committee on Health, said health taxes should not be viewed solely as a revenue-generation measure but also as a public health intervention aimed at discouraging the consumption of harmful products. Banigo stressed the need for a transparent and accountable system that connects tax collection to measurable health benefits, particularly for vulnerable populations.
The World Health Organisation Country Representative in Nigeria, Dr. Pavel Ursu, noted that scientific evidence alone would not be sufficient to secure the adoption and implementation of health tax reforms. Ursu said policymakers needed to understand Nigeria’s political economy, institutional arrangements, and the interests of stakeholders capable of influencing the reform process. He emphasised the need for collaboration among various stakeholders, including the Ministries of Health and Finance, lawmakers, and civil society organisations.
Dr. Kumanan Rasanathan, Executive Director of the Alliance for Health Policy and Systems Research, expressed hope that the workshop would help participants move beyond developing strategies to changing the way health tax reforms are understood, developed, and implemented. He stressed the importance of collaboration among researchers, policymakers, and other stakeholders to ensure that evidence translates into practical policy action.
The implementation of health taxes in Nigeria is crucial, given the country's growing disease burden and the need to improve domestic health financing. Out-of-pocket payments remain a major source of healthcare funding in Nigeria, exposing households to financial hardship when they need medical treatment. The World Health Organisation identifies health taxes as instruments that can discourage harmful consumption while generating revenue for public services and health interventions.
Key points
- Health taxes can influence consumption patterns and generate domestic resources for healthcare.
- Collaboration among stakeholders is necessary for effective implementation of health tax reforms.
- Health taxes can help reduce the growing burden of non-communicable diseases in Nigeria.
