Nigeria loses N729 billion yearly from low SSB tax – Experts

… CAPPA sensitise journalists on dangers of SSB

Nigeria can generate an additional N729 billion yearly if the federal government increases the current tax on Sugar-sweetened beverages (SSB) from the current N10 to at least N130.

In two days of journalism training on SSB tax and Industry monitoring organized by Corporate Accountability and Public Participation Africa (CAPPA) in Lagos State, some experts advocated tax increase over the weekend.

The experts said the country loses an estimated N78.8 billion spent on informal care for those suffering from SSB-induced illness and diseases.

A research associate at the Centre for the Study of the Economics of Africa (CSEA),
Fidelis Obaniyi, while presenting a paper titled” SSBs and Economic Impact on Household: Cost of Diseases and Effective Taxation”, said that raising the SSB tax could generate as much as N729 billion yearly for the Nigerian government while also addressing public health concerns.

He stated that the direct cost of treating illness associated with treating SSB-related diseases is even higher, amounting to N493.3 billion yearly, which represents 0.36 percent of the Gross Domestic Product (GDP).

The experts warned Nigerians about the dangers related to the consumption of soft drinks which could lead to serious health consequences and death.

The Executive Director of (CAPPA), Akinbode Oluwafemi, in his remarks at the opening of Journalism training on SSB and Industry Monitoring in Lagos, warned that the habitual consumption of SSBs does not only affect us as individuals and our communities but also the health and well-being of our nation as a whole.
Providing data, Oluwafemi, said that in Nigeria, studies have shown that close to 30 per cent of annual deaths are due to Non-Communicable Diseases (NCDs), which are primarily linked to unhealthy diets, particularly the consumption of sugar-sweetened beverages (SSBs), also known as soft drinks.

“The high rates of obesity, diabetes, hypertension, and other cardiovascular diseases highlight a health crisis in Nigeria, with over 11 million Nigerians currently living with diabetes, he disclosed.

Read also: FG to raise tax on sugar-sweetened beverages to 20%

He warned that Nigeria’s status as the fourth-largest consumer of soft drinks globally is concerning and is a looming health epidemic if not addressed promptly.

He further advised that the adverse effects of these preventable diseases on productivity, revenue loss, and human lives underscore the urgency for effective policy solutions.

However, he noted that the government initiated an Excise Duty of N10 per litre tax on all carbonated sugar-sweetened beverages (SSBs) through the 2021 Finance Act and began its implementation in June 2022, the objective of which is to reduce the excessive consumption of sugary drinks.

Public Health Consultant, University College Hospital, University of Ibadan, Francis Fagbule, noted that cancer is responsible for over 72,000 deaths in Nigeria annually, with an account of 102,000 new cases of cancer annually.

“In 2016, Non-Communicable Diseases (NCDs) were estimated to account for 24% – 29% of all deaths in Nigeria. NCDs account for 24% of total deaths and cardiovascular diseases take a lead of 11% (over 7%) of deaths attributable to NCDs.

“Cancers (3%), diabetes (2%), and chronic respiratory diseases (1%). The probability of dying prematurely from NCDs in Nigeria is over 20% according to the World Health Organisation (WHO)”.