With rising rates of obesity, diabetes, hypertension, and other cardiovascular diseases among young people, experts are urging the Nigerian government to raise taxes on Sugar-Sweetened Beverages (SSBs) to reduce consumption. Common SSBs include sodas, energy drinks, fruit juices, and iced teas.
This call was made during a two-day journalism training on SSB tax and industry monitoring, organized by Corporate Accountability and Public Participation Africa (CAPPA) in Lagos.
Experts argue that increasing the SSB tax from the current N10 to a globally recommended minimum of 20% of the final retail price could significantly curb excessive sugary drink consumption. They emphasized that the revenue generated could be reinvested into the healthcare sector, addressing the needs of patients with Non-Communicable Diseases (NCDs), improving healthcare infrastructure, and enhancing the welfare of health workers.
Akinbode Oluwafemi, Executive Director of CAPPA, noted that nearly 30% of annual deaths in Nigeria are linked to NCDs, primarily due to unhealthy diets that include high SSB consumption. “Nigeria’s position as the fourth-largest consumer of soft drinks globally raises serious health concerns and signals a looming health crisis if not addressed,” he said. He highlighted the adverse effects of preventable diseases on productivity, revenue loss, and human lives, stressing the need for effective policy solutions.
Oluwafemi criticized the current 10% SSB tax for falling short of global standards. “This low tax rate, coupled with deceptive marketing practices by manufacturers—such as misleading content disclosures and lack of front-pack labeling—continues to lure consumers while jeopardizing their health.”
Public health expert Francis Fagbule highlighted the financial burden of NCDs, citing a median out-of-pocket cost of ₦10,193 to ₦10,750 per month, with about 30% of households facing catastrophic health expenditures in 2018. He pointed out that Nigeria spent ₦384.4 billion on NCDs in 2017 and urged stakeholders to support the tax increase, noting that similar measures in other markets have successfully reduced consumption.
Fidelis Obaniyi, a research associate at the Centre for the Study of Economies of Africa (CSEA), added that Nigeria ranks fourth globally in SSB consumption, with sales reaching 38.6 million liters, negatively impacting the health sector. He reported that direct medical costs for NCDs amounted to ₦493,334 million in 2023, alongside significant losses due to decreased productivity and informal care.
“The economic consequences of unhealthy food choices are profound, encompassing direct healthcare costs and broader societal impacts. An SSB tax is a viable policy intervention that can enhance public health, lower healthcare expenses, and generate revenue for further health initiatives,” he said.
Akin Jimoh, Program Director of the Development Communications Network, stressed that NCDs are already straining Nigeria’s healthcare system. He called on journalists and media organizations to educate the public about the dangers of excessive SSB consumption. “Media can drive behavioral change and save lives by informing the public and advocating for effective policy implementation,” he stated.
Joke Kujenya, Executive-in-Charge of Media Mentors Journalism Centre, highlighted that approximately 11.2 million Nigerians are living with diabetes, with an annual care cost of about $4.5 billion (around ₦7.3 billion). She urged journalists and stakeholders to raise awareness about the risks associated with high SSB consumption.