Sugary drinks tax too small to save lives, CAPPA warns

… Urges FG to raise levy, backs Tinubu”’s health tax plan

By Chioma Obinna

TheCAPPA, has warned that Nigeria’s current N10 tax on sugary drinks is  too small to save lives, even as it welcomed a new Federal Government plan to channel revenues from alcohol, tobacco, and soft drinks into health financing.

The warning followed a disclosure by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, who revealed at a national health financing dialogue in Abuja that a draft policy to earmark excise-tax revenues for healthcare is almost ready and will soon be submitted to the Minister of Health and Social Welfare.

While describing the move as a bold step, CAPPA said Nigeria must raise the levy on sugar-sweetened beverages (SSBs) far above the current N10 per litre if it is serious about tackling rising deaths from diabetes, heart disease, and other non-communicable diseases (NCDs).

“We commend the government for proposing to earmark the revenues from SIN tax to public health, as long advocated by WHO, CAPPA and other pro-public health civil society organisations in Nigeria. However, we must emphasise that in the case of sugary drinks, the impact of this draft policy will only be maximised if Nigeria significantly raises SSB tax from the current N10 per litre to at least N130 per litre, adjustable to inflation,” said Akinbode Oluwafemi, Executive Director of CAPPA.

Nigeria introduced the N10 per litre excise duty under the 2021 Finance Act, but CAPPA argues that the amount is “grossly inadequate,” representing less than one percent of the price of a typical 50cl bottle of soda.

“Such a token measure cannot meaningfully discourage excessive consumption or generate substantial revenue,” Oluwafemi warned. “By contrast, an increase to a minimum of N130 per litre would generate up to N729 billion annually, according to expert analysis by the Centre for the Study of the Economies of Africa (CSEA). This revenue could offset the estimated N493.3 billion Nigeria currently spends each year treating SSB-related diseases such as diabetes and cardiovascular conditions.”

He added that the higher levy would not only save lives but also push beverage manufacturers to reduce sugar content in their products, thereby promoting healthier diets.

According to CAPPA, Nigeria is already facing a public health emergency, with nearly 30 percent of all deaths linked to NCDs driven by excessive consumption of sugar, salt, alcohol and tobacco. Health experts warn that the rising burden could overwhelm already fragile health facilities if unchecked.

The group’s call echoes recent World Health Organisation (WHO) advice to member states, including Nigeria, to raise excise taxes on sugary drinks, alcohol and tobacco by at least 50 percent over the next decade. Under its global “3 by 35 Initiative,” WHO projects that such measures could avert 50 million premature deaths worldwide in the next 50 years while also generating critical funds for struggling health systems.

“We see this draft policy as a promising start,” Oluwafemi stressed. “But unless the taxes are benchmarked at effective levels, Nigeria risks missing the opportunity to cut consumption, protect citizens, and generate the critical funds our healthcare system desperately needs.”

Beyond sugary drinks, CAPPA also urged the government to strengthen alcohol and tobacco taxes, insisting that only a comprehensive approach would safeguard public health and secure sustainable financing for the nation’s health sector.

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