CAPPA Urges FG to Increase SSB Tax Significantly to Combat Non-Communicable Diseases

The Corporate Accountability and Public Participation Africa (CAPPA) has called on the Federal Government (FG) to increase the tax on Sugar-Sweetened Beverages (SSB) substantially as part of efforts to curb non-communicable diseases (NCDs) in Nigeria.

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The Executive Director of CAPPA, Mr. Akinbode Oluwafemi, made the call during a press briefing held in Abuja on Tuesday, July 8, 2025.

His words: “Nigeria is in the throes of a public health crisis, a ticking time bomb driven by the excessive consumption of unhealthy diets, particularly SSBs. These sugar-sweetened beverages, popularly known as soft drinks and their likes, are killing us slowly, turning our streets into graveyards and our hospitals into crowded waiting rooms. According to scientific and medical evidence, they are directly fueling the explosive rise in non-communicable diseases (NCDs), including the slump and die trend we are currently witnessing across various parts of the country.

“Not too long ago, conditions like diabetes, hypertension, stroke, heart diseases, and obesity were all rare and described as afflictions of big men and women. Today, they are snatching our fathers, crippling our mothers, sending young people to early graves, and draining the life savings of entire families.

“According to the World Health Organisation (WHO), NCDs now account for 1 in 3 deaths in Nigeria. They are no longer the diseases of the rich or the elderly; they are aggressively decimating our workforce, destabilising our families, and undermining national productivity. A recent investigation by a leading national daily revealed that Nigerians spend an estimated ₦1.92 trillion ($1.26 billion) annually on healthcare related to these preventable conditions.”

Oluwafemi lamented that families are forced to sell land, liquidate lifelong savings, and descend into absolute poverty in desperate bids to save loved ones, noting that mothers who should be growing small businesses or mentoring children are instead chained to hospital wards as unpaid, invisible caregivers.

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He stated that this crisis has outgrown mere health concerns, explaining that it is now a full-blown social and economic catastrophe.
The Illusion of the N10/Litre Tax

“Inaction will only cost us more. Prevention is not only cheaper but also smarter,” he said, affirming that the Nigerian government in 2021, reflected on the problem and introduced the SSB tax, imposing a token ₦10 per litre Excise Duty on all non-alcoholic, sweetened, and carbonated drinks.

The ED mentioned that this policy was envisioned as a pro-health measure to discourage excessive consumption of SSBs, reduce public addiction to sugary drinks, and stem the rising tide of NCDs.

“Sadly, the ₦10/litre tax is and has always been inadequate. At the time, a 33cl bottle of SSB cost about ₦150. Since three bottles make up one litre, the tax per bottle was about ₦3.33 — a negligible 2 per cent price bump, far too weak to deter consumption. Today, with bottles priced above ₦300, this tax now amounts to barely 1 percent of the price, failing to shift market behaviour or improve public health outcomes.

“Evidence from global health research is unequivocal: to achieve public health objectives, health taxes must raise retail prices by at least 20–50 percent. Nigeria’s ₦10/litre levy is insufficient to influence consumer behaviour meaningfully; it does not even graze the surface of the problem. It cannot work effectively unless it is revised upward,” he remarked.

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Oluwafemi acknowledged that there is a deliberate plot by industry actors to mislabel the SSB tax as “sugar tax”, emphasising that they do this intentionally to create confusion and weaken public support.

According to him, what Nigeria is currently implementing is called SSB tax, not sugar tax. “Nigeria’s SSB tax specifically targets sugary drinks, which are major contributors to excess sugar intake. This rhetorical manipulation exemplifies the classic ‘confuse, divide, and conquer’ strategy we have come to know the industry by.

“Beyond the tax debate is also another dangerous threat: without stricter measures, Nigeria risks becoming a global dumping ground for unregulated, sugar-saturated drinks. Industry data shows Nigeria already leads the African market for soft drinks, boasting a staggering 53 billion litres in sales just last year, that is in 2024.

“At the 2025 Food and Beverage West Africa exhibition event in Lagos, we observed deeply disturbing scenes. Foreign sugary and energy drinks, many without proper labels, were boldly displayed everywhere. Their sponsors claimed they had “regulatory approval,” but our investigations and official queries have now revealed this to be false. Even more shocking, they told interested wholesalers and observers they could rebrand these drinks however they liked — meaning anyone could slap any name or label on them and sell them to the public.”

“This is reckless and dangerous,” he decried, stressing that Nigerians deserve to know exactly what they are consuming. “This is why we are also demanding mandatory front-of-pack labelling regulations on these products. Imagine — drinks of unknown content, of unknown origin, with no health or safety information, sold freely to our people, branded in any way that fits market demands.

“This is the ultimate betrayal of the Nigerian consumer. We call on regulatory authorities to take urgent note and act decisively.”

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The ED asserted that an improved SSB Tax is the way forward, saying: “In our village, they say: if your house is on fire, you do not wait to gather pure water, rainwater, or bottled water. You quench the fire with whatever you have. Our demands are not rocket science; they are clearly enshrined in the 1999 Constitution of the Federal Republic of Nigeria (as amended), which states that the security and welfare of the people shall be the primary purpose of government.

“We make bold to declare today that public health is national security and an urgent, non-negotiable imperative. At a time when Nigeria is grappling with a double burden of health emergencies and tightening public finances, a well-designed and efficiently implemented SSB tax offers a low-cost, high-impact solution with broad benefits. It can reduce diet-related diseases, ease pressure on overstretched health systems, and generate much-needed domestic revenue.”

He noted that President Bola Ahmed Tinubu, in his “Renewed Hope 2023: Action Plan for a Better Nigeria” manifesto, promised to deploy consumption taxes to “deter behaviour that undermines individual and community health.”

“Today, the President has a clear opportunity to strengthen the SSB tax and ensure its transparent implementation as part of his duty to protect the health and future of all Nigerians. At ₦10 per litre, the current SSB tax rate amounts to just 1 percent of the average retail price, which is at least ₦1,000 per litre of sugary drinks sold in the country. This is too minimal to influence consumer behaviour.”

ED Oluwafemi cited the global best practices and World Health Organisation (WHO), stating that effective health taxes should lead to at least a 25 percent increase in the retail price of sugary drinks.

“Just last week, the WHO advised Nigeria and other member countries to raise the prices of alcohol and tobacco by 50 percent through taxation over the next 10 years to help curb rising NCDs. Similarly, Bloomberg’s Taskforce on Fiscal Policy for Health, which includes Nigeria’s Minister of Health and Social Welfare, Professor Muhammad Ali Pate, also recommends a 50 percent price increase to reduce consumption and prevent NCDs.

“Beyond health concerns, Nigeria is missing out on valuable revenue. A stronger and better-structured SSB tax has the potential to generate over ₦200 billion each year. These funds could directly support Nigeria’s goal of increased healthcare financing, including the Basic Healthcare Provision Fund, the National Health Insurance Authority, and school feeding programmes — helping to build a healthier and more equitable society. Other countries have shown what is possible when governments take bold action. South Africa, Mexico, and the United Kingdom have all raised their SSB taxes significantly. In each case, consumption declined while jobs and revenue were protected. Nigeria must follow suit. The moment to act is now.”

He urged the FG to increase the SSB tax so that it raises the final retail price of sugary drinks by 20 or 30 percent — or ideally 50 percent, in line with WHO recommendations.

“Specifically, we are calling on the Nigerian government to increase the SSB tax from ₦10 per litre to at least ₦130 per litre. This will reduce consumption and push manufacturers to reformulate their products. Earmark revenue for healthcare, NCD prevention, nutrition education, basic health services in underserved communities, and school feeding programmes.

“Mandate transparent front-of-pack labelling on all food and beverage products so Nigerians know what they consume. Require annual public reporting by the Federal Inland Revenue Service, Nigeria Customs Service, and the Ministries of Finance and Health to ensure accountability. Establish a strong firewall against industry interference. Policies must serve the people, not corporate profits.

“Invest resources in food security and agroecology. By supporting the cultivation of real and nutritious food, we can strengthen local food systems, improve public health, and reduce the dangerous dependence of Nigerians on ultra-processed products.”

He highlighted the importance of SSB tax hike, including reduction in the consumption of sugar-laden drinks, lowering the incidence of preventable illnesses, and improving national health outcomes.

Oluwafemi added that it also offers a practical way to expand Nigeria’s fiscal space without increasing broad-based taxes.

“At a time when oil revenues are volatile and public financing needs are growing, modifying consumption habits while raising domestic resources is both efficient and equitable.”

Speaking further, he addressed misinformation in the industry, stressing: “We cannot conclude without rebutting the predictable barrage of half-truths and deceit from industry actors and their paid mouthpieces — including the newly surfaced and unverifiable platform that calls itself Think Business Africa. Our investigation confirms this so-called “entity” is unregistered with Nigerian corporate authorities, has no credible and verifiable track record of public health engagement whether locally or globally, and frankly speaking, a shameless propaganda machine for its paymasters.

“On what authority, then, does it seek to undermine evidence-based policy designed to save Nigerian lives? The answer is simple: profit. These false and wicked arguments, repeatedly recycled by these groups, are about protecting profit margins at the expense of Nigerian lives.”

He pointed out their claims and CAPPA’s rebuttals, “CAPPA’s recommendation for a tax hike lacks credibility because it fails to provide evidence that the existing tax has reduced SSB consumption or improved health outcomes.

“Our answer is that this observation inadvertently reinforces our argument that the current ₦10 per litre has not reduced public consumption patterns of SSBs because it is simply too low, hence CAPPA’s advocacy for a sustainable and effective tax regime. Presently, the current ₦10/litre tax is barely a nudge, let alone a deterrent. It is too weak to work in the first place. At ₦10 per litre, consumer behaviour remains unchanged because the price signal is insignificant. This is like applying a drop of water to quench a raging fire. Without meaningful price impact, we cannot expect meaningful consumption changes.”

Oluwafemi clarified: “Globally, the evidence is clear: taxes that increase retail prices by 20-50 percent reduce consumption and improve health outcomes. Countries like South Africa, Mexico, and the United Kingdom have implemented significant SSB taxes, and each recorded substantial drops in consumption, while their economies remained resilient.

“The related argument that Nigeria needs to ‘wait for an assessment’ of the SSB tax’s effectiveness before increasing the SSB tax is a dangerous delay tactic commonly applied by the SSB industry. When it comes to public health, inaction is the worst decision we can make.”

He emphasised that another claim is that CAPPA’s data is statistically inconsistent or outdated, or that there is a mismatch between cause and effect in SSB consumption among urban women or young males.

“This is a classic deflection strategy: attack the messenger to distract from the message. Our data is current, evidence-based, and drawn from robust, peer-reviewed studies. This includes our simulation on the potential fiscal and public health impact of the SSB tax in Nigeria, and our latest ‘Junk on Our Plates’ report, which exposes the deceptive marketing of unhealthy foods and drinks to Nigerians — including children and youth.

“The main point is simple: SSBs are fueling an epidemic of non-communicable diseases across every demographic. Debating who drinks more — urban women or young men — is a distraction,” he noted, reiterating that these products are killing Nigerians every day.

On tax will harm the economy and lead to job losses, the ED said: “This argument is neither new nor unique to Nigeria. It is the industry’s favourite horror story — the same scare tactic deployed in South Africa before they introduced their own SSB tax. Yet, the sector remained stable and jobs were protected. In fact, in countries where the SSB tax has been successfully implemented, beverage companies adapted by reformulating products, introducing healthier alternatives, and even expanding their market share.

“Moreover, the ‘millions of jobs’ the industry cites are largely informal retail roles — our men, mothers, and grandmothers selling sachet water and sweetened drinks at kiosks and traffic spots. They keep crying that ‘business is grinding to a halt’, yet they declare humongous profits every year and have even diversified into producing countless other drinks. What is so wrong in reformulating these products to make them healthy and safe for their consumers?

“Instead of peddling fear, why not support these small vendors through product reformulation and revenue reinvestment: low-interest loans, cold-chain grants, and incentives to sell healthier options? If protecting profits means sacrificing our national workforce to diabetes, amputations, and premature deaths, then we have utterly lost our moral compass.”

Oluwafemi stated that the SSB industry’s contribution to backward integration is important, but not at the cost of public health. “Like we said earlier, industrial development that thrives on human sickness is not development; it is vampirism. A well-structured SSB tax does not kill the industry—it pushes it to innovate. We should not use “industrial development” as an excuse to promote business environments that enable sickness.

“In fact, a higher SSB tax will incentivize manufacturers to reduce sugar content, diversify product lines, and create healthier options that support both public health and economic growth.”

He mentioned that the idea that Nigeria’s per capita sugar consumption is too low to warrant a tax is “a dangerous thinking.”

“What matters is not the national average, but the pattern and concentration of consumption among vulnerable groups, especially adolescents. Studies consistently show that in urban areas and among youths, sugary drink consumption is rapidly escalating.

“Moreover, using per capita figures as a shield ignores the exponential growth of Nigeria’s SSB market — growth already acknowledged by the industry itself — and the aggressive marketing tactics targeting young, impressionable consumers. If we wait until our per capita consumption rivals that of Western countries, it will be far too late; the damage will already be irreversible,” he warned.

With reference to the argument that the tax lacks transparency, he said: “We wholeheartedly agree that the utilisation of tax revenues must be transparent and accountable. But the solution is stronger oversight, not abandoning the policy. In fact, CAPPA strongly recommends that revenues from the SSB tax be strictly earmarked for health promotion, nutrition education, and non-communicable disease prevention.

“We take this opportunity to reiterate our demand for public reporting by the Federal Inland Revenue Service, Nigeria Customs Service, and the Ministries of Finance and Health to track tax collection and ensure these funds truly support national health priorities.”.

Oluwafemi continued: “The industry calls for labelling enforcement, nutrition education, and physical activity promotion. We agree! But this is not an either-or scenario. We need all the above, and an SSB tax is a powerful, proven tool to support these other interventions. You cannot talk about a comprehensive approach while undermining one of its strongest pillars. An SSB tax reduces consumption directly while also generating revenue to fund other arms of intervention. These efforts are complementary, not mutually exclusive.”

He noted that if saving lives and preventing amputations is “just” a revenue grab, then “let us grab as much as possible.”

“This is about putting life above profit, about ensuring our children do not inherit a country where a bottle of soft drink is cheaper than clean water, and chronic and preventable diseases become rite of passage,” he added.

The ED affirmed that Nigeria is part of a global community facing similar health threats, and learning from other countries is not weakness but wisdom. “NCDs are not foreign; they are in our homes, our villages, our cities. The graves are Nigerian. The suffering is Nigerian. The hospitals are full of Nigerians. In this context, the SSB tax is not an imported idea — it is a homegrown necessity.”

He asked: “So, why are we still debating whether to raise this tax? Why should we settle for less when the evidence is overwhelming that stronger action will save lives?”

Oluwafemi maintained that Nigeria cannot afford the cost of delay and the time to act is now, while reaffirming that a stronger SSB tax will save lives, ease the pressure on Nigeria’s fragile health system, and generate much-needed revenue to build a healthier, more prosperous nation.

“Let us choose health over profit. Let us choose the future over the past,” he advised.