Advocates for increasing the tax on Sugar-Sweetened Beverages (SSBs) from N10 per liter have gained a significant ally in Finance Minister Wale Edun, who expressed his support for the tax on Wednesday, July 17.
Edun, demonstrating a thorough understanding of the health and environmental impacts of sugary drinks, voiced his support in principle and showed a keen interest in receiving additional, locally contextual data to explore the potential benefits of increasing SSB taxes.
This development occurred during a courtesy visit to the Minister’s office by members of the National Action on Sugar Reduction Coalition (NASR) and Gatefield, a public strategy firm.
Edun reaffirmed his commitment to revisiting the topic for future policy decisions, including potential tax adjustments.
Omei Bongos-Ikwue, Gatefield Health Communications Specialist and NASR representative, stated that the Minister disclosed the government’s plan to suspend the implementation of the SSB tax law as part of a broader policy push to control inflation in the country. Edun emphasized the country’s need for revenue, adding that the suspension would be a temporary measure.
While acknowledging that beverage companies create jobs, Edun highlighted the negative consequences of excessive sugary drink consumption due to low taxes, both for health and the environment. He reiterated the government’s commitment to revitalizing the economy, adding that the 6-month economic stabilization plan aims to support beverage companies and provide temporary relief to citizens.
“The Ministry is not in favor of companies that sell unhealthy products, but the overriding situation in Nigeria is that we need to help people cope with the cost-of-living spike,” he noted.
Drawing comparisons to past arguments against tobacco taxation, Edun reiterated that the Ministry of Health and Social Welfare, under Dr. Ali Pate, is working hard to reduce the cost of drugs and pharmaceuticals. He encouraged the coalition to continue generating data-driven analyses and information for public dissemination, underscoring the importance of addressing rising healthcare costs.
Shirley Ewang, Advocacy Lead at Gatefield, informed the Minister that taxing sugary drinks is urgently needed, not only for its revenue generation potential but also for its potential to reduce the burden of diseases such as heart disease, certain cancers, and type 2 diabetes. Citing research that links sugary drink consumption to these diseases, Ewang urged the Minister to implement a mechanism requiring the manufacturing industry to present their data and profit reports to the Ministry of Health and Social Welfare. This, according to the Coalition, would help the government make balanced policy decisions, considering that the sugary drinks industry has consistently argued that taxes would lead to job losses.
Bernard Enyia, Vice President of the Diabetes Association of Nigeria and co-chair of the NASR coalition, lamented the rising cost of insulin and diabetes care due to the global economic downturn. “As the face of people living with diabetes in Nigeria, I can tell you that we are afraid to die,” he said.
Echoing this sentiment, coalition cancer survivor Gloria Okwu regretted that “people living with chronic illnesses face astronomical healthcare costs, in addition to the lost hours of productivity from hospital visits.”
