On February 26, 2024, Corporate Accountability and Public Participation Africa (CAPPA) held a public presentation of its research study titled “Potential Fiscal and Public Health Effects of Sugar-Sweetened Beverages in Nigeria.” The research work was conducted in collaboration with the Centre for the Study of the Economics of Africa (CSEA) with support from the Global Health Advocacy Incubator. The report launch event drew 82 participants, including officials from relevant Ministries, Departments, and Agencies (MDAs), led by the Inter-ministerial Ad-hoc Committee on SSB Tax, Civil Society Organizations (CSOs), the Nigeria Customs Service, the Federal Inland Revenue Service, the Standard Organization of Nigeria, public health advocates, media representatives, and other key stakeholders.
The study interrogated the consumption trends of sugar-sweetened beverages (SSBs) in Nigeria and their implications for public health and fiscal policies. Part of its findings identified notable gender and age disparities in SSB consumption, with men consuming more women across all age groups. The highest consumption trend was observed among individuals aged 15-19, particularly with carbonated drinks, underscoring the susceptibility of Nigerian youth to excessive intake of sweetened beverages.
Additionally, the research evaluated the growing health challenges related to SSB intake and how the SSB tax could deter the purchase and consumption of these beverages, thus driving a reduction in consumption and in turn, lowering mortality risks tied to the excessive intake of SSBs. Presently, Nigeria levies a N10 per litre excise tax on all non-alcoholic and sugar-sweetened carbonated drinks. CAPPA’s research study simulated an increase of Nigeria’s SSB tax rate to N130 to reflect a substantial increase in the final retail prices of these beverages. The resultant changes from this proposed adjustment would result in a total net-of-tax revenue surge of 972% amounting to N729 billion per annum – which will offer substantial fiscal benefits and provide more resources for enhancing healthcare infrastructure and social services in the country.
In his opening remarks, Mr. Akinbode Oluwafemi underscored the pressing necessity to revise the SSB tax rate to tackle the escalating incidence of Non-Communicable Diseases (NCDs) in Nigeria. He noted that NCDs, largely linked to poor dietary choices like SSB consumption, are depleting economic and labour resources while deepening poverty cycles due to substantial health-related costs impacting individuals, families, and the overall economy. He called on policymakers to leverage the study’s insights to bolster national and public health strategies.
During her goodwill message at the event, Joy Amafah, the In-country Coordinator for the Global Health Advocacy Incubator (GHAI), expressed gratitude to CAPPA and the members of the National Sugar-Sweetened Beverage Tax Coalition for their commitment to improving public health through their advocacy work.
The Assistant DCG Excise, Free Trade Zone & Industrial Incentives, Nigeria Customs Service (NCS), A.I. John spoke at the meeting, assuring stakeholders of the NCS’s commitment to enforcing government’s public health policies, particularly the implementation of the SSB tax. The NCS is responsible for the direct collection of the SSB tax.
Dr Amadi Dorothy, Representative of National Coordinator, NCD Division, Federal Ministry of Health, and Social Welfare (FMoHSW) also re-stated the Division’s commitment in promoting the advocacy efforts of CAPPA to influence sustainable public health policies.
Dr. Fatimah Ojo, Deputy Director at the Federal Competition and Consumer Protection Commission (FCCPC), noted the commission’s obligations to ensuring consumers have access to healthy products and services, including safe food options. She asserted that the well-being of Nigerians must be protected and prioritized above market profits.
The official presentation of the report was led by Dr. Chukwuma Anyaike, Director of Public Health at the Federal Ministry of Health and Social Welfare (FMoHSW), during the event. In his remarks, he lauded CAPPA and its partners for their dedication to supporting national interventions that safeguard public health. He noted that data from the study will support the effective implementation of healthy policies favourable to the Nigerians.
As the event progressed, Abayomi Sarumi, CAPPA’s Food Policy and Program Manager provided an overview of the organization’s campaign around the SSB tax. He mentioned that CAPPA’s efforts began in October 2022, following the enactment of a N10 per litre tax on carbonated drinks and sugar sweetened beverages through the 2021 Finance Act. While he acknowledged steps taken by the government to mitigate the health risks associated with SSB consumption, he argued for an increase of tax rate via a sustainable legislative pathway to ensure substantial impact.
Fidelis Obaniyi, a Research Associate at the Centre for the Study of the Economics of Africa (CSEA), discussed findings from the report and its methodology. Lagos, Onitsha, and Kano were selected as the demographic representation for the study in order to provide a diverse representation of urban centres within major regions of the country. Obaniyi affirmed that the report provides essential information and insights, establishing itself as an indispensable resource for facilitating knowledgeable interventions directed at improving the health outcomes of Nigerians. He urged the government to conduct more public awareness and advocacy programmes to stimulate behavioural change. Nonetheless, he acknowledged social bias and under-reporting as challenges that may impede public reception of a higher SSB tax rate, given the tax’s unpopularity among some segments of the public and the industry.
Dr. Francis Fagbule, a Public Health Consultant at University College Hospital Ibadan, clarified that “sugar-sweetened beverages” include any drinks sweetened with added sugars, which are major contributors to the rise in non-communicable diseases (NCDs). He attributed their excessive consumption primarily to affordability. To combat this issue, Dr. Fagbule emphasized the necessity of making such beverages less affordable and accessible.
The event concluded with final remarks from Mr. Akinbode Oluwafemi. He expressed gratitude to all participants, including media representatives and government officials, for their ongoing support in promoting public health. He encouraged everyone to use the information from the study to advocate for a sustainable approach to the Sugar-Sweetened Beverage (SSB) tax.
Download Report Here: Potential Fiscal and Public Health Effects of SSB Tax in Nigeria
