LAGOS, Nigeria (VOICE OF NAIJA)- The Lagos State Government is considering a pro-health levy on
Sugar-Sweetened Beverages (SSB) to boost public health and lower the
rising non-communicable diseases (NCDs) burden.
Commissioner for Health Prof. Akin Abayomi noted that an SSB levy would
contribute to driving the state’s human capital agenda – healthier
children and good nutrition – and positively impact its health and
education sectors.
The global public health expert spoke Tuesday during a meeting with
transparency watchdog Corporate Accountability and Public Participation
Africa (CAPPA), United States-based Global Health Advocacy Incubator and
the Centre for the Study of Economies of Africa (CSEA).
Prof. Abayomi’s comments followed the delegation’s presentation of a
simulation study of the “Potential Fiscal and Public Health Effects of
SSB tax in Nigeria”.
Nigeria is the 4th highest soft drinks consuming country in the world,
and the study proposes, among others, that to wean Nigerians off their
addiction to SSBs and bring down the NCDs burden, the federal government
ought to increase the SSB Tax to N130 per litre, from the current N10.
Nigeria
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The policy could also earn the government an estimated N729 billion in
tax revenue, which CAPPA and other stakeholders propose could be
allocated to strengthening the health sector.
CAPPA’s Executive Director Akinbode Oluwafemi explained the health and
fiscal benefits of the policy for Lagosians.
He said: “We think that this is one of the tools that we can use to
lower NCDs that are becoming a big burden in Nigeria – including
obesity, high blood pressure, etc.
“The government imposed a N10 per litre tax on SSBs in 2021, which is
actually five kobo for 50cl of SSBs. At that time, it (SSBs) was selling
for N100. It is a fixed tax. Today, it is selling for N300. The
government tax is still N10. And if you look at the inflation rate,
that, in itself, needs to have been improved.”
“We commissioned the Centre for the Study of Economies of Africa (CSEA)
to look at the potential health and fiscal impacts of SSB tax. We did a
simulation, and even before the floating of the naira when this study
was completed, the simulation projected that N130 should be the
appropriate tax per litre of SSBs in Nigeria.”
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Oluwafemi expressed delight at engaging policymakers like the health
commissioner, adding, “We see Lagos as one of the champions of public
health policies, and how we can take this further.
“We are looking for support because we will soon be looking at a
national legislation that will make Sin Tax a much more sustainable law
rather than every year and at that point we will be looking at champions
to speak for this.”
Responding, the commissioner acknowledged the problems caused by NCDs
and advised that localised legislation through the House of Assembly
would align with the state’s immediate health goals.
Prof Abayomi reasoned that funds raised through such a policy could be
“channelled specifically to the areas of the consequence of those
consumptions. So, it can go to health and education, because we’re now
using it to drive a human capital agenda, which is healthier children
and good nutrition.
“Health access and going to good schools: these produce our human
capital infrastructure. In Lagos, we have two kinds of infrastructure: a
physical one and human infrastructure. That’s how we look at it.”
READ ALSO: CAPPA Proposes N130 Tax Per Litre On Sugary Beverages
Earlier, Joy Amafah, Nigeria Coordinator of Global Health Advocacy
Incubator, highlighted the importance of the Lagos health ministry and
the commissioner’s office to the goal of a healthy Nigeria.
Amafah added: “We see your office as a critical policy health champion
to help us achieve this and also to create a legal pathway beyond the
Finance Act that is more sustainable, that will create a sustainable
implementation framework for SSB taxes such that there could be an
opportunity for earmarking of revenue generated from tax collected to
other public health interventions, an opportunity for a sustainable
implementation such that it is not every year that advocates and the
government will have to justify why the tax should be there.
“Even before the inflation, N10 per litre was far from global
recommendations. So, we’re advocating for your support, leadership and
guidance in pushing this forward.”
According to the 2022 World Health Organisation (WHO) Manual on SSB
Taxation Policies to Promote Healthy Diets, SSB taxes can be a
win-win-win strategy: a win for public health (and averted health-care
costs), a win for government revenue, and a win for health equity.