***As CAPPA wants increase tax from ₦10 to ₦130 per litre
By Mashe Umaru Gwamna
The Coordinating Minister of Health and Social Welfare, Professor Mohammad Ali Pate,
said the consumption of SSBs has been linked to numerous health risks, including obesity, heart disease, weight gain, type 2 diabetes, kidney diseases, non-alcoholic liver disease, tooth decay, cavities, and gout.
The Minister, stated this in Abuja at the 2024 National Sugar Conference on Sugar-Sweetened Beverages Tax and Health Financing in Nigeria, organized by CAPPA in collaboration with the Federal Ministry of Health and Social Welfare.
Represented by Pharm. Mrs. Olubunmi Aribeana, the Director, Food and Drug Services Department, the Minister said the health burden of SSB consumption is particularly significant in low- and middle-income countries, where rates of obesity and related health problems are on the rise.
“In Nigeria, we face a growing health crisis with SSB-related diseases such as obesity and diabetes. The associated healthcare costs are escalating at an alarming rate. Recent reviews and meta-analyses by the International Diabetes Foundation (IDF) show that as of 2021, over 3.6 million people are diabetic with 53% of these citizens undiagnosed; and this number is expected to rise to about 5 million by the year 2030. The cost of treating diabetes per person has surged from an average of N60,000 in 2011 to N800,000 in 2021, and it is projected to exceed N1,000,000 by 2030.
“The goal of the SSB tax is to reduce the consumption of these unhealthy beverages, ultimately preventing obesity and its related diseases. In 2021, Nigeria joined over 100 countries that have introduced taxes on sugar-sweetened beverages. This tax, embedded in the Finance Act of 2021, levies a ₦10 tax on each litre of all non-alcoholic, sweetened, and carbonated drinks.
“As we look to the future, we must view the SSB tax as a cornerstone of our strategy to improve public health and healthcare financing. By discouraging the consumption of sugar-laden beverages, we aim to reduce the prevalence of obesity and diabetes, and in turn, alleviate the financial burden on our healthcare system. This tax serves as a deterrent and generates essential revenue that can be reinvested into healthcare initiatives, particularly preventive measures and the treatment of non-communicable diseases.
“Our vision is a Nigeria where healthier choices are accessible and affordable for all citizens. We aspire to create an environment where nutritious alternatives are readily available, empowering individuals to make informed decisions about their diet and overall health. To achieve this, we must strengthen our collaboration with stakeholders, including the food and beverage industry, healthcare providers, and civil society organizations, to promote healthier lifestyles and ensure the sustainability of our health systems.
“In line with this vision, the 2023 National Policy on Food Safety and Quality and its Implementation Plan also prioritises the consumption of healthy foods. It specifically expects the Government at every level to develop strategies for reducing the consumption of Sugar, Alcohol, and Sodium as well as the elimination of Trans-Fatty Acids (TFAs) in Nigerian diets. We are committed to ensuring that our food supply chain supports the health and well-being of our population by minimising the risks associated with poor dietary choices.”
On his part, Akinbode Oluwafemi, Executive Director of Corporate Accountability and Public Participation Africa (CAPPA) has advocated increase in SSBs tax from ₦10 to ₦130 per litre.
CAPPA, said at N10 per liter, Nigeria’s current tax on SSBs falls short of the World Health Organisation’s recommendation and global best practice of ,a minimum of 20 per cent of total retail prices .
“In fact, the impact of our current tax rate has been largely eroded by escalating inflationary pressures, rendering it nearly ineffective, hence the need for a re-evaluation.
“This is why, last year, CAPPA in collaboration with the Centre for the Study of Economies of Africa, conducted a simulation study that examined the potential fiscal and public health effects of SSBs in Nigeria, to provide Nigeria-specific data and information to support a re-calibration of the SSB tax rate. Findings from this research not only underscored the urgent need to address the public health impact of excessive SSB consumption but also identified an effective tax rate of N130 per litre as the most sustainable peg for realising public health goals.
“After two years of implementing the SSB tax, we strongly advocate, based on available evidence evaluating its impacts, that the Nigerian government activate all necessary policy measures to increase the tax from N10 to N130 per liter or implement a revised tax structure to 50 per cent of the total retail price rate of SSB products as recommended by the Global Tax Force for Health of which our honourabe minister is a member. This adjustment will not only align with the World Health Organisation’s (WHO) recommendations but also with the 2024 Bloomberg report on effective health taxes. “Additionally, this increment must be accompanied by a redefinition of SSBs to capture all products that fall within the categorisation, and a resolve to establish a legal framework for earmarking the tax for public health initiatives.
“At this point, I must draw attention to the fact that while concerned Nigerians and public health stakeholders work tirelessly to address the harmful impacts of SSBs, the beverage and food industry is fighting just as hard to block these efforts in order to protect their excessive profits, reaped at the expense of the wellbeing of Nigerians. Their machinations and gimmicks have manifested in an onslaught of misleading advertising deliberately launched to manipulate public taste, the promotion of doomsday arguments against the necessity of an effective SSB tax, false claims of economic investment, and attempts to infiltrate policymaking circles to derail food safety agenda.”
