Corporate Accountability and Public Participation Africa (CAPPA) has opened talks with the Lagos State Government on the proposed hike of the Sugar-Sweetened Beverage (SSB) Tax from N10 to N130 per litre. This dialogue occurred on March 12, 2024, when CAPPA’s Executive Director, Akinbode Oluwafemi, leading a delegation from the National SSB Tax Coalition, met with the Lagos Health Commissioner, Prof. Akin Abayomi, to discuss the health and fiscal benefits of the policy for Lagosians.
Since the Federal Government of Nigeria introduced the SSB Tax in 2021—imposing a N10 levy on each litre of non-alcoholic and sugar-sweetened carbonated drinks—CAPPA has been at the forefront of efforts to realise the policy’s gains. The policy seeks to wean Nigerians off the consumption of sugary drinks, which offer no nutritional value to the body. Beyond offering no health benefits, these beverages significantly contribute to the country’s rising prevalence of non-communicable diseases (NCDs), such as obesity, high blood pressure, and diabetes, along with the associated economic losses.
During the visit to the health commissioner, Akinbode advocated for an increase in the SSB tax, reflecting that such an increase would significantly influence a reduction in the SSB consumption habits of citizens, thereby contributing to a decrease in the country’s growing rate of NCDs.
“In 2021, the government introduced a fixed tax of N10 per litre on sugar-sweetened beverages (SSBs), effectively amounting to five Kobo for every 50cl of SSBs. At that time, SSBs were priced at N100. Today, despite the price of SSBs increasing to N300 due to inflation, the government tax remains unchanged at N10,” he said. “Considering the changes in the economy, there’s a clear need for this tax rate to be adjusted to properly capture inflationary pressures.”
The coalition, including Joy Amafah, Nigeria Coordinator of United States-based Global Health Advocacy Incubator, and Fidelis Obaniyi, Research Associate at Centre for the Study of Economies of Africa (CSEA), presented Prof. Abayomi with a copy of a simulation study conducted by CAPPA on the “Potential Fiscal and Public Health Effects of SSB tax in Nigeria”.
According to findings and projections from the study, an upward review of the SSB tax to a N130 levy per litre would greatly reduce SSB consumption, promoting the health of Nigerians, and potentially raising about N729 billion in tax revenue for the government.
Members of the coalition urged the Lagos State government, via its health ministry, to support ongoing efforts aimed at creating a more sustainable framework for the implementation of the SSB tax in Nigeria. Additionally, the coalition noted that the substantial revenue generated from the SSB tax will significantly contribute to the country’s development if earmarked for enhancing public health and other pro-people interventions.
Responding, the commissioner noted the SSB tax potential to drive the state’s human capital agenda—focusing on healthier children and improved nutrition—and positively impact its health and education sectors. He acknowledged the challenges posed by NCDs and advised that a localised SSB tax legislation through the House of Assembly would align more closely with the state’s immediate goals.
The commissioner argued that the funds generated from the policy could be specifically directed to areas most impacted by the unhealthy consumption of SSBs, such as the health and education sectors. This approach would further reinforce the commitment to enhancing human capital and social infrastructure within the state.
