Nigeria's sugary drink tax hike could curb diabetes and fund healthcare
Nigeria is facing a growing public health crisis linked to sugary drinks, with rising rates of diabetes, obesity, and heart disease. Akinbode Oluwafemi, Executive Director of the Corporate Accountability and Public Participation Africa (CAPPA), has now called for a sharp increase in the country's Sugar-Sweetened Beverage (SSB) tax to tackle the problem and boost healthcare funding.
The current SSB tax in Nigeria stands at just N10 per litre—only 1% of the average retail price of sugary drinks. Oluwafemi argues this rate is far too low and proposes raising it to at least N130 per litre, in line with World Health Organisation (WHO) guidelines. He dismisses industry claims that higher taxes would harm jobs or economic growth, pointing to successful examples in countries like South Africa, Mexico, and the UK, where similar levies have been introduced.
Nigeria is losing over N200 billion annually in potential revenue by keeping the tax at its current level. The funds from an increased SSB tax could help finance healthcare and social programmes, easing pressure on the country's volatile oil-dependent economy. With Nigerians spending an estimated N1.92 trillion each year on healthcare for preventable non-communicable diseases (NCDs), the financial burden is growing. CAPPA is also pushing for stricter regulations, including mandatory front-of-pack labelling on sugary drinks, annual public reporting on health impacts, and stronger protections against corporate influence in public health policies. Oluwafemi warns that without action, Nigeria risks a 'ticking public health time bomb' as consumption of unhealthy beverages continues to rise.
A higher SSB tax could provide much-needed funding for Nigeria's healthcare system while reducing the health risks tied to excessive sugar consumption. The proposed changes aim to align the country with global best practices and curb the rising costs of preventable diseases.
