By Milcah Tanimu
Nigeria could gain an extra N729 billion each year if the federal government raises the tax on sugar-sweetened beverages (SSBs) from N10 to N130. During a recent training in Lagos, experts discussed this potential increase.
They highlighted that Nigeria currently loses about N78.8 billion annually on informal care for people with SSB-related illnesses. Fidelis Obaniyi, a research associate at the Centre for the Study of the Economics of Africa (CSEA), presented a paper titled “SSBs and Economic Impact on Households: Cost of Diseases and Effective Taxation.” He argued that raising the SSB tax could generate up to N729 billion yearly for the government while also addressing public health concerns.
Obaniyi also noted that treating SSB-related diseases costs N493.3 billion each year. This amount represents 0.36 percent of Nigeria’s Gross Domestic Product (GDP). The experts warned that consuming soft drinks can lead to severe health issues and even death.
Akinbode Oluwafemi, the Executive Director of CAPPA, emphasized the harmful effects of SSB consumption on individuals and communities. He pointed out that nearly 30 percent of annual deaths in Nigeria result from non-communicable diseases (NCDs) linked to unhealthy diets and SSB consumption.
Oluwafemi said, “High rates of obesity, diabetes, hypertension, and other cardiovascular diseases show a health crisis in Nigeria. Currently, over 11 million Nigerians live with diabetes.”
He expressed concern that Nigeria ranks as the fourth-largest consumer of soft drinks globally. This trend could lead to a serious health epidemic if not addressed quickly. The negative effects of preventable diseases on productivity and revenue loss highlight the urgent need for effective policy solutions.
Interestingly, the Nigerian government imposed an excise duty of N10 per litre on all carbonated SSBs through the 2021 Finance Act. This initiative aims to reduce excessive sugary drink consumption. However, public health consultant Francis Fagbule from the University College Hospital in Ibadan noted that cancer causes over 72,000 deaths in Nigeria each year, with 102,000 new cases reported annually.
Fagbule added, “In 2016, NCDs accounted for 24% to 29% of all deaths in Nigeria. Specifically, cardiovascular diseases lead at 11%. The probability of dying prematurely from NCDs in Nigeria exceeds 20%, according to the World Health Organization (WHO).”
In conclusion, addressing the low SSB tax could significantly improve Nigeria’s public health and economic landscape, according to the experts.
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