CAPPA Calls for Stronger Tobacco, Alcohol, and Sugar Taxes to Combat Health Crisis

The Corporate Accountability and Public Participation Africa (CAPPA) has lauded the Federal Government’s move to develop a draft policy that will allocate revenues from excise taxes on alcohol, tobacco, and sugar-sweetened beverages (SSBs) toward health financing

CAPPA described this initiative as a pivotal opportunity for President Bola Ahmed Tinubu’s administration to establish a legacy of sustainable funding for Nigeria’s fragile healthcare system and to safeguard the health of its citizens.

Speaking at a recent national health-financing dialogue in Abuja, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, revealed that the government is finalizing a draft policy to direct excise-tax revenues from alcohol, tobacco, and sugary drinks into health financing. He stated that the policy would soon be submitted to the Minister of Health and Social Welfare for review.

In response, CAPPA issued a statement on Monday, referencing local and World Health Organization (WHO) reports highlighting Nigeria’s grossly inadequate public health funding and the country’s struggle with non-communicable diseases (NCDs). The report emphasizes that excessive consumption of sugar-laden beverages, salt, tobacco, and alcohol fuels these health issues, which account for nearly 30% of all deaths in Nigeria—posing a significant public health emergency.

By proposing the draft policy, CAPPA commended the government’s commitment to addressing the rising incidence of NCDs. However, the organization urged the government to adopt a comprehensive approach by not only earmarking SIN (Special Indirect Taxes) but also implementing WHO and CAPPA recommendations to maximize policy effectiveness. This includes setting tax rates high enough to reduce consumption, promote product reformulation, and alleviate the country’s health burden.

The WHO has recently advised Nigeria and other member states to increase taxes on sugary drinks, alcohol, and tobacco by 50% over the next decade to curb NCDs. The organization believes such measures would significantly decrease consumption of these harmful products—linked to illnesses like diabetes and cancer—and generate vital revenue for public health. This approach is part of WHO’s “3 by 35 Initiative,” a global effort aimed at reducing NCD-related deaths, which the WHO estimates could be prevented by a 50% price increase on these products over the next 50 years.

Globally, NCDs—including heart disease, cancer, and diabetes—are responsible for over 75% of all deaths. WHO estimates that a one-time 50% increase in the price of these products could prevent up to 50 million premature deaths over the next half-century.

Akinbode Oluwafemi, CAPPA’s Executive Director, praised the Tax Reforms Committee’s vision but cautioned that without raising health taxes to effective levels, the policy’s impact will be limited.

“We commend the government for proposing to allocate revenues from SIN taxes to public health, as long advocated by WHO and civil society organizations in Nigeria. However, to truly make an impact, Nigeria must significantly increase the SSB tax from the current N10 per litre to at least N130 per litre, adjustable for inflation,” Oluwafemi said.

He explained that, based on research by the Centre for the Study of the Economies of Africa (CSEA), such an increase could generate up to N729 billion annually—funds that could offset Nigeria’s estimated N493.3 billion yearly expenditure on treating diseases related to sugary drinks, such as diabetes and cardiovascular conditions.

He emphasized that higher taxes would not only generate revenue but also help curb the rising prevalence of NCDs, which threaten to overwhelm health facilities nationwide. Additionally, increased taxes could incentivize beverage manufacturers to reformulate products with lower sugar content, fostering healthier diets.

Furthermore, CAPPA urged the government to expand and strengthen taxes on tobacco and alcohol, ensuring rates are sufficiently high to discourage harmful consumption.