By JKNewsMedia
THE CORPORATE Accountability and Public Participation Africa (CAPPA) has commended Nigeria’s Federal Government (FG) for initiating a draft policy that will channel revenues from excise taxes on alcohol, tobacco, and sugar-sweetened beverages into health financing.
The organisation described the development as a significant opportunity for the administration of President Bola Ahmed Tinubu to create sustainable funding for Nigeria’s fragile healthcare system and strengthen efforts to protect citizens’ health.
Speaking at a recent national health-financing dialogue in Abuja, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, confirmed that the FG was finalising a draft policy to allocate excise-tax revenues from alcohol, tobacco, and sugary drinks into the health sector.
He explained that the draft would be submitted to the Minister of Health and Social Welfare.
Responding to the disclosure, CAPPA issued a statement highlighting findings from local research and World Health Organisation (WHO) reports that show Nigeria continues to face grossly inadequate public health financing while battling a rising prevalence of non-communicable diseases (NCDs).
The group noted that excessive consumption of sugar-laden beverages, salt, tobacco, and alcohol has contributed to nearly 30 per cent of deaths nationwide, calling the situation a public health emergency.
The organisation emphasised that the draft policy reflects the FG’s recognition of the health burden posed by NCDs.
CAPPA urged authorities to ensure that the earmarked taxes are structured in line with recommendations from WHO and civil society advocates to achieve meaningful impact.
The WHO has advised Nigeria and other member states to raise the prices of sugary drinks, alcohol, and tobacco by at least 50 per cent through taxation over the next decade.
According to the organisation, such measures will help cut consumption of harmful products, reduce cases of diabetes and cancer, and secure critical revenue for public health.
The guidance falls under the WHO’s “3 by 35 Initiative,” which seeks to address mounting NCD challenges at a time of declining development aid and growing public debt.
In a press statement signed by its Media and Communication Officer, Robert Egbe, CAPPA referenced WHO data showing that NCDs such as heart disease, cancer, and diabetes account for more than 75 per cent of all deaths worldwide.
The WHO estimates that a one-time 50 per cent price increase on alcohol, tobacco, and sugary drinks could prevent 50 million premature deaths globally over the next five decades.
Akinbode Oluwafemi, Executive Director of CAPPA, applauded the Presidential Tax Reforms Committee for what he described as courage and vision in drafting the policy.
However, he warned that the effectiveness of the initiative would depend on the level at which excise taxes are set.
“We commend the government for proposing to earmark the revenues from SIN tax to public health, as long advocated by WHO, CAPPA and other pro-public health civil society organisations in Nigeria.
However, we must emphasise that in the case of sugary drinks, the impact of this draft policy will only be maximised if Nigeria significantly raises SSB tax from the current N10 per litre to at least N130 per litre, adjustable to inflation,” Oluwafemi stated.
He explained that the current N10 per litre excise duty, introduced under the 2021 Finance Act, represents only about N3.33 on a N300, 50cl bottle, less than one per cent of the retail price.
He stressed that such a marginal tax rate could neither reduce excessive consumption nor generate adequate revenue for healthcare financing.
Citing expert analysis by the Centre for the Study of the Economies of Africa (CSEA), Oluwafemi said an increase to N130 per litre could generate up to N729 billion annually.
This revenue, he noted, would offset the estimated N493.3 billion Nigeria currently spends each year treating SSB-related illnesses such as diabetes and cardiovascular conditions.
He added that higher taxes would encourage beverage manufacturers to reduce sugar content, support healthier diets, and help curb the prevalence of NCDs that already account for close to 30 per cent of deaths nationwide.
CAPPA further advised the Federal Government to expand and strengthen excise taxes on tobacco and alcohol to ensure the rates are sufficiently high to discourage harmful consumption and secure lasting health and economic benefits for the country.
