In Nigeria, the failure to implement the sugar-sweetened beverage (SSB) tax siphons over ₦200 billion from the economy annually, according to new evidence by Corporate Accountability and Public Participation Africa (CAPPA).Â
CAPPA cautions that such a failure not only robs the nation of its hard-earned money but also incites escalated public health hazards due to non-communicable diseases (NCDs) attributed to excessive consumption of sugar.
In a speech to a recent press briefing in Abuja, CAPPA urged the government to substantially increase the tax from its existing ₦10 per liter to at least ₦130 per liter. Experts pointed out that such taxes will bring the taxation of this kind of beverage closer to World Health Organization standards, where fizzy beverages are taxed such that retail price increases of up to 50 percent are imposed in order to reduce consumption effectively.
The current tax on alcohol and soda earns minimal revenue, ₦3 on a ₦300 can of soda, insufficient to discourage consumption or finance public health programs. On effective collection, CAPPA projects potential revenue of up to ₦729 billion annually, enough to cover necessary health and social interventions such as the National Health Insurance Scheme, school feeding, and other basic healthcare delivery.
Apart from lost business, the nation also has huge health expenditures. Direct treatment for disease caused by sweetened beverages alone takes up nearly ₦493.3 billion every year—roughly 0.36 percent of the country’s national GDP. On top of these are household expenses, nearly ₦78.8 billion every year, for informal care for people with diabetes, hypertension, obesity, and other comorbidities. Nigeria is now experiencing a steep increase in NCD-related mortality, which constitutes almost 30 percent of yearly deaths, with more than 11 million citizens having diabetes.
Public health officials say that urbanization, intensive promotion of processed foods, and lifestyle sedentation are driving the NCD epidemic. Low-income children are particularly vulnerable, often being subjected to misleading food marketing for sweetened drinks, shaping eating patterns throughout their lifetime.
Globally, Mexico, South Africa, and Chile have managed to decrease consumption of sugar and enhance health gains because of strong and well-implemented SSB taxes. Opposing politicians tend to use fear-mongering, job losses or economic damage, but independent analyses have not been able to sustain these claims.
Experts recommend that Nigeria needs to link SSB tax revenues to health programs, implement mandatory nutrition labeling and reinforce regulation to avoid industry pushback. That way, the nation can address two huge issues simultaneously: recouping billions lost in public funds and preventing chronic diseases and their expensive complications.
Investment in a strong sugar-beverage tax is a win-win for both public health and fiscal strength. It’s an effective, win-win approach that benefits the nation both economically and in terms of public health.
