Nigeria Loses Over ₦200 Billion Annually Without A Stronger Tax On Sugary Drinks

The Executive Director of the Corporate Accountability and Public Participation Africa (CAPPA), Akinbode Oluwafemi, has raised the alarm: Nigeria is potentially losing more than ₦200 billion each year by not implementing a more robust Sugar-Sweetened Beverage (SSB) tax.

Why Nigeria Is Leaving Money—and Public Health—on the Table

At a press briefing in Abuja on Tuesday, Oluwafemi explained that the current tax — ₦10 per litre — represents just about 1% of the average cost of a sugary drink in Nigeria. In effect, this token levy has not substantially influenced pricing or consumer behaviour.

He argued that increasing the SSB tax could realistically generate over ₦200 billion annually. This revenue could be reinvested in Nigeria’s healthcare infrastructure, the National Health Insurance Authority (NHIA), school feeding programmes, and other critical public health initiatives.

How High Should the Tax Go?

Drawing from the WHO’s recommendation that sugary beverage taxes should raise prices by 20% to 50%, Oluwafemi believes Nigeria’s current levy is woefully inadequate.

He proposes a progressive approach:

At ₦130 per litre, Nigeria would be in step with global benchmarks, such as those adopted by South Africa, Mexico, and the UK, where stronger taxes have led to reduced sugar consumption, better public health outcomes, and preserved employment in the beverage sector.

A Public Health Time Bomb

Oluwafemi warns that Nigeria is sitting on a public health crisis driven by rampant consumption of sugary drinks. He phrases it bluntly:

“These drinks are killing us slowly… They are no longer diseases of the rich; they are crippling our workforce and pushing families into extreme poverty.” 

Recent studies estimate Nigerians are spending a staggering ₦1.92 trillion annually on healthcare associated with preventable non-communicable diseases (NCDs) like diabetes, heart disease, and obesity.

He stressed that entrenched NCDs account for approximately 30% of annual deaths in the country, with diabetes affecting 11 million Nigerians, signaling a ticking time bomb.

Beyond Health: Economic and Fiscal Gains

Increasing the SSB tax isn’t just a health strategy—it’s a fiscal booster. CAPPA estimates the policy shift could unlock ₦729 billion in revenue each year, while simultaneously reducing at-home healthcare spending by households.

Oluwafemi said it best:

“This is not just about revenue. This is about saving lives, protecting families, and strengthening our healthcare system in an era of tight fiscal space. An improved SSB tax is a win–win.” 

Debunking Industry ‘Job-Loss’ Claims

Unsurprisingly, sugary drink manufacturers have portrayed tax hikes as threats to jobs. However, evidence from countries that implemented strong SSB taxes shows otherwise. Rather than lopping off salaries, companies pivoted—reformulating products, introducing new healthier alternatives, and maintaining employment levels .

Transparency, Labeling, and Accountability

CAPPA’s recommendations go beyond taxing:

• Mandatory front-of-pack labeling so consumers can easily identify sugar levels

• Annual public reporting from the Federal Inland Revenue Service (FIRS), Nigeria Customs, and NPHCDA

• Measures to exclude corporate influence from public health policymaking

A Blueprint for Public Health and Prosperity

In a period marked by fluctuating oil revenues and rising healthcare costs, a well-designed SSB tax represents an efficient and fair tool for expanding Nigeria's fiscal capacity without turning to broad tax hikes.

In Summary:

• Nigeria is foregoing at least ₦200 billion annually

• The country's current ₦10/litre tax is effectively symbolic

• A proposed increase to ₦130/litre would align with WHO best practices

• Benefits would span across public health, fiscal space, and consumer transparency

• Evidence from other nations shows economic resilience, not collapse

What’s Next?

Nigeria has a clear path forward:

1. Amend the SSB tax law to boost it from ₦10 to ₦130 per litre

2. Allocate revenue directly to the Basic Healthcare Provision Fund, NHIA, and school nutrition programmes

3. Enforce transparent labeling standards for all sweetened beverage products

4. Publish annual impact reports by revenue agencies

5. Guard against industry interference with public health policy

If adopted, these measures would not only stem the tide of diet-driven illnesses but also shore up Nigeria's public finances—without burdening average consumers.

In a country where illness extends poverty rather than healing it, reforming the SSB tax is not just timely—it’s critical. It’s time to translate Minister Tinubu's “Renewed Hope” agenda into tangible impact: healthier lives, stronger communities, and a more robust economy—one sugar-free sip at a time.