Why Increase in SSB Tax Will Save Lives, Boost Healthcare in Nigeria -Experts
By Azeez Disu
With the increasing rate of obesity, diabetes, hypertension, and other cardiovascular diseases among young people, experts have called on the government to increase tax on Sugar-Sweetened Beverages (SSBs) to help reduce the consumption of the products. Common SSBs are Soda, Energy/Fruit Drinks, Iced Tea, and others.
The experts made the call at a two-day Journalism Training on Sugar-Sweetened Beverages (SSBs) Tax and Industry Monitoring organised by the Corporate Accountability and Public Participation Africa (CAPPA) in Lagos recently.
The experts explained that an increase in SSB Tax from N10 to the global recommendation of at least a 20% increase in the final retail price of SSBs will help reduce the excessive consumption of sugary drinks. They added that the revenue from the tax could be used to boost the health sector by catering to patients battling with Non-Communicable Diseases (NCDs), improving infrastructure, the welfare of health workers, and others.
Akinbode Oluwafemi, Executive Director, CAPPA, disclosed that
studies have shown that close to 30% of annual deaths in Nigeria are due to NCDs which are primarily linked to unhealthy diets, particularly the consumption of SSBs, also known as “soft drinks”.
He explained that “Nigeria’s status as the fourth-largest consumer of soft drinks globally is a concern and is a looming health epidemic if not addressed promptly. The adverse effects of these preventable diseases on productivity, revenue loss, and human lives underscore the urgency for effective policy solutions.”
Oluwafemi added that the present 10% SSB tax falls short of global recommendations. “It falls short of the global recommendation of at least a 20% increase in the final retail price of SSBs.
Besides the very low tax regime on SSB products, their manufacturers have continued to use deceptive marketing, lack of content disclosure, non-existence of Front of Pack labeling, and false nutrition benefit to recruit consumers and sustain profits at the expense of health.”
Francis Fagbule, Public Health Expert said the median out-of-pocket cost of NCDs was ₦ 10,193 – ₦ 10,750 monthly, adding that about 30% of households with NCDs experienced catastrophic health expenditures in 2018.
Fagbule explained further that Nigeria’s National Health Accounts show that ₦384.4 billion was spent on NCDs in Nigeria in 2017.
He, therefore, urged all stakeholders to support the SSB tax increase as the increase in some other markets has significantly reduced consumption.
In the same vein, Fidelis Obaniyi, Research Associate, Centre for the Study of Economies of Africa (CSEA) said Nigeria is ranked fourth globally in SSB consumption with 38.6 million litres in sales and that has negative implications on the health sector.
He stated that about ₦493,334 million was spent on Direct medical costs of NCDs in 2023, ₦ 78,816 million was lost to low productivity of the labour force, and ₦57,921 million was spent on Informal care.
“The economic impacts of unhealthy food are profound, including direct
healthcare costs and broader societal implications. An SSB tax is a
viable policy intervention that can improve public health, reduce
healthcare costs, and generate revenue for further health initiatives.
“While the tax of N10 per litre on SSB in Nigeria is a good beginning, the
tax rate must be improved to have a significant fiscal and health
impact,” he said.
The Program Director, Development Communications Network, Chief Editor, Nature Africa, Akin Jimoh, said NCDs are already placing inordinate demands on Nigeria’s healthcare system, and the need to reduce SSB intake is highly relevant for improved health outcomes.
He urged journalists and media organisations to sensitise the public on the effect of their excessive SSB consumption.
“Journalists and media institutions can alter behaviour and save lives by educating the public on proper actions right through to calling for effective policy implementation and monitoring,” he said.
Similarly, Joke Kujenya, Executiv-in-Charge, Media Mentors Journalism Centre, said about 11.2 million Nigerians are living with diabetes, and the $4.5 billion (About ₦7,288,200,000.00 billion annual cost of diabetes care), urging journalists and stakeholders to educate people about the danger of excessive SSB consumption.