The Corporate Accountability and Public Participation Africa (CAPPA) has warned that Nigeria’s current ₦10 tax on sugary drinks is far too low to protect public health, even as it welcomed a new federal plan to channel revenues from alcohol, tobacco and soft drinks into healthcare financing.
The group’s position followed remarks by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, who disclosed at a health financing dialogue in Abuja that a draft policy to earmark excise-tax revenues for healthcare is nearly ready and will soon be submitted to the Minister of Health and Social Welfare.
While describing the move as “a bold step,” CAPPA said Nigeria must go much further if it is serious about curbing deaths from diabetes, heart disease and other non-communicable diseases (NCDs).
“We commend the government for proposing to earmark revenues from sin taxes to public health, as long advocated by WHO, CAPPA and other civil society groups,” said Akinbode Oluwafemi, CAPPA’s Executive Director. “However, in the case of sugary drinks, the impact of this policy will only be maximised if Nigeria raises the SSB tax from the current ₦10 per litre to at least ₦130 per litre, indexed to inflation.”
Nigeria introduced the ₦10 per litre levy under the 2021 Finance Act, but CAPPA argues that it amounts to less than one per cent of the price of a typical 50cl soda bottle. By contrast, an increase to ₦130 per litre could generate up to ₦729 billion annually, according to estimates by the Centre for the Study of the Economies of Africa (CSEA). That revenue, CAPPA noted, could offset the ₦493.3 billion Nigeria spends each year treating SSB-related illnesses.
“Such a reform would not only save lives but also compel beverage manufacturers to cut sugar content, encouraging healthier diets,” Oluwafemi said.
CAPPA warned that Nigeria is already facing a public health emergency, with nearly 30 per cent of all deaths linked to NCDs fuelled by excessive sugar, salt, alcohol and tobacco consumption. Without tougher action, it cautioned, the rising burden could overwhelm fragile health systems.
The group’s call aligns with recent World Health Organisation (WHO) advice urging member states, including Nigeria, to raise excise taxes on sugary drinks, alcohol and tobacco by at least 50 per cent over the next decade. Under its “3 by 35 Initiative,” WHO projects that such measures could avert 50 million premature deaths globally in 50 years while generating vital resources for underfunded health systems.
“Unless the taxes are benchmarked at effective levels, Nigeria risks missing a historic opportunity to cut consumption, protect citizens and generate the critical funds our healthcare system desperately needs,” Oluwafemi added.
CAPPA further urged the government to strengthen alcohol and tobacco taxes, insisting that only a comprehensive approach would safeguard public health and secure sustainable financing for the sector.
