CSO Demands N130 Per Litre Tax On Sugar Sweetened Beverages

Corporate Accountability and Public Participation Africa (CAPPA), a Civil Society Organisation (CSO), has called on the federal government to increase the Sugar Sweetened Beverage (SSB) tax to a minimum of N130 per litre.

Executive director of CAPPA, Akinbode Oluwafemi, made the call on Monday at the public presentation of the simulation study of the “Potential Fiscal and Public Health Effects of SSB tax in Nigeria” held in Abuja.

Recall that Nigeria introduced the 10 Naira per litre Excise Duty on SSBs in 2021 through the Finance Act.

Akinbode noted that going by the current inflation rate, the 10 Naira per litre imposed on SSBs in 2021 is today possibly worth less than 4 four kobo because it was a fixed tax, not adjustable to inflation.

He said “In essence, the SSB tax needs to be increased significantly in the 2024 Fiscal Act, with a framework that is adjustable to inflation as we also begin the conversation about earmarking the tax or a sizeable portion of it for public health.

“Findings of the study have shown that at a minimum of 130 Naira  per litre, we will see a significant drop in consumption and a decrease in Nigeria’s consumption fueled diseases. I am further convinced that this document provides the government, including the executive and lawmakers, the much-needed data to pursue this policy pathway to a logical conclusion for the benefit of all.”

Akinbode explained that the argument of the people who care more about their profit over public health on consumption needs does not outweigh the many benefits inherent in this tax.

He said the damages done to families and loved ones who cater for the sick are enough motivation to see the public rally round the government in doing what is right for the general public.

Also speaking at the event, the director, public health department of the Federal Ministry of Health and Social Welfare, Dr. Chukwuma Anyaike, noted that excessive intake of sugar is not good for the body.

He stressed the importance of sugar control, saying that Nigeria is moving towards a doubt burden country, in the sense that non-communicable diseases are also competing with communicable diseases.

“If people do the right thing, there won’t be a need for tax, the tax is secondary to preventing manufacturers from doing the wrong thing. And we are not interested in increasing the tax, we are interested in people doing the right thing,” Anyaike added.