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Nigeria: Federal Health Ministry Supports 20% Tax Increase on Sugar-Sweetened Beverages

The Federal Ministry of Health has affirmed its commitment to raising the tax on Sugar-Sweetened Beverages (SSBs) from the current rate of 10% to 20%. This move is aimed at addressing the escalating public health concerns associated with excessive sugar consumption.

The ministry further explained that the increased tax would serve as a deterrent for consumers considering SSBs and would, in turn, encourage the adoption of healthier beverage alternatives.

Speaking at the Pro-Health Tax Policy Campaign on SSBs, which took place at the Federal Ministries of Finance and Health in Abuja, Dr. Chukwuma Anyaike, the Director and Head of the Public Health Department at the Federal Ministry of Health, stated, “The taxation on SSBs has proven effective in countries such as Saudi Arabia, South Africa, Spain, Portugal, and many others, where it has successfully curbed the consumption of sugar-sweetened drinks.”

She added, “Introducing and sustaining this tax in Nigeria will also help reduce the excessive consumption of SSBs and subsequently alleviate the burden of non-communicable diseases (NCDs). We are committed to achieving the global best practice of applying at least 20% of the final retail price on all SSBs, as the current rate of 10 naira per liter falls short of that goal. This campaign aligns with other government initiatives aimed at enhancing the public health of Nigerians in line with the global priority of significantly mitigating NCDs.”

Peter Agada, a spokesperson for individuals with diabetes, urged Nigerians to abstain from carbonated drinks, pointing out that while these products may be inexpensive to purchase, the cost of treating diabetes is considerably higher.

Agada implored the Federal Government to swiftly subsidize the expenses related to diabetes management, including medications and monitoring devices, in order to curtail preventable deaths. He said, “One out of 17 Nigerians is living with diabetes or is pre-diabetic, on the verge of becoming diabetic soon. This constitutes a pandemic, and diabetes is a lethal ailment. It’s not just a health issue; it’s a life destroyer all around the globe at present. People are losing their limbs, eyesight, and more. This should be a wake-up call to take this matter very seriously.”

Representing the National Action and Sugar Reduction Coalition, Edozie Chukwuma reiterated the call for the current administration to raise the SSB tax as part of an overarching strategy to discourage the consumption of sugary products.

Chukwuma explained, “Essentially, we’re urging the government to implement laws that establish a tax designed to restrict or eventually reduce the consumption of sugary drinks. How would this tax function? It would simply make sugary drinks less affordable, thereby generating revenue that could be directed toward supporting healthcare, particularly in addressing the non-communicable disease burden in the country. The issue is an epidemic that requires attention. Out-of-pocket healthcare payments have reached unprecedented levels, with over 75% of Nigerians bearing the financial burden of treating various illnesses.”

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