Executive Director of the Corporate Accountability and Public Participation Africa (CAPPA), Akinbode Oluwafemi, has called on the Federal Government to urgently increase the Sugar-Sweetened Beverage (SSB) tax, warning that Nigeria is missing out on over N200 billion annually in potential annual revenue.
He said the funds could significantly boost healthcare financing and support critical social programmes, including school feeding and non-communicable disease (NCD) prevention initiatives.
Speaking at a media roundtable on Tuesday in Abuja, Oluwafemi stressed that the current N10 per litre SSB tax is grossly inadequate, amounting to just 1% of the average retail price of sugary drinks in Nigeria.
“A stronger and better-structured SSB tax has the potential to generate over N200 billion each year.
“These funds could directly support Nigeria’s goal of increased healthcare financing, including the Basic Healthcare Provision Fund, the National Health Insurance Authority, and school feeding programmes, helping to build a healthier and more equitable society,” said Oluwafemi.
Push for N130 per litre tax rate
Oluwafemi called for the tax to be revised upward to at least N130 per litre, aligning with World Health Organization (WHO) recommendations to raise retail prices by 20 to 50% to effectively reduce consumption of sugar-laden drinks.
He noted that other countries like South Africa, Mexico, and the United Kingdom have implemented significant SSB tax hikes with measurable success. These countries recorded a decline in sugary drink consumption, while also preserving jobs and increasing revenue.
Beyond revenue, Oluwafemi emphasized that an improved SSB tax can help reduce preventable illnesses such as diabetes, obesity, and cardiovascular diseases, while also expanding Nigeria’s fiscal space without raising broad-based taxes.
Health and economic gains
Oluwafemi said Nigeria is facing a “ticking public health time bomb” with rising rates of diabetes, stroke, heart disease, and obesity driven by excessive consumption of sugary beverages.
“These drinks are killing us slowly. They are no longer diseases of the rich; they are crippling our workforce and pushing families into extreme poverty,” he warned.
- A recent investigation, he noted, found that Nigerians now spend an estimated N1.92 trillion annually on healthcare linked to preventable NCDs.
- He urged President Bola Ahmed Tinubu to match his “Renewed Hope” manifesto with action by strengthening the SSB tax regime and ensuring transparent implementation.
- Oluwafemi also dismissed counterclaims by beverage industry actors, arguing that SSB taxes have succeeded globally in countries like South Africa, Mexico, and the UK without harming jobs or industry growth.
“We’ve seen these same scare tactics before warnings of job losses and economic ruin. But what really happens is product reformulation, healthier options, and sustained business. Public health must come before profit,” he added.
CAPPA is also demanding mandatory front-of-pack labelling, annual public reporting by revenue agencies, and a firewall against corporate interference in public health policymaking.
“Let’s be clear: this is not just about revenue. This is about saving lives, protecting families, and strengthening our healthcare system in an era of tight fiscal space. An improved SSB tax is a win-win,” he said.
He stressed that raising the SSB tax is one of the most equitable and cost-effective interventions available, particularly at a time when Nigeria faces volatile oil revenues and mounting health costs.
