By Chukwuma Umeorah
ThinkBusiness Africa has challenged calls to increase Nigeria’s sugar-sweetened beverage (SSB) tax, citing the country’s low sugar consumption as evidence that such a hike is unjustified.
During the presentation of its data-driven report of “Nigeria’s Beverage Tax Policy and Its Socioeconomic Impact” in Lagos on Tuesday, ThinkBusiness stated that Nigeria’s per capita sugar intake stood at just 6.9 kilograms in 2018, lower than in many countries without SSB taxes. It argued that these findings undermine claims of a national sugar crisis.
The firm’s position came in response to a proposal by the Corporate Accountability and Public Participation Africa (CAPPA), which recommended increasing the current N10 per litre SSB tax to N130 per litre. CAPPA claimed that carbonated drinks are driving health challenges such as obesity, diabetes, and hypertension.
“There is no clear data to show that the current N10 per-litre tax has led to any reduction in sugar consumption or improvements in health outcomes. So, is the policy really effective?” the report queried.
The firm’s CEO, Dr. Ogho Okiti, warned that Nigeria’s beverage industry could face collapse if the proposed increase is implemented, adding that producers already pay up to 45 per cent in combined taxes.
“SSB producers already face a high tax burden up to 45 per cent in combined taxes, including 30 per cent corporate income tax, 7.5 per cent VAT, and up to 2.5 per cent in Tertiary Education Tax,” he said. The firm argued that adding new levies could force companies to shut down, increase unemployment, and discourage further investment in the economy.
“Raising the tax could cripple the carbonated drinks sector and harm the broader economy. It will lead to higher prices for carbonated drinks. CAPPA’s conclusions, if implemented, could lead to the collapse of the SSB sector. Many businesses will suffer. Without businesses, there will be no investment, and without investment, there will be no jobs or government revenue,” he warned.
CAPPA also claimed that processed food companies exploit cultural connections to promote unhealthy products and that excessive sugar and sodium intake are directly linked to health issues. However, ThinkBusiness pointed out that “health issues such as obesity are more prevalent among women over 40, while SSB consumption is highest among teenagers aged 15 to 19.”
The report further argued that sugar is identified by global institutions such as the World Bank as a “significant contributor,” not a direct cause, of such health complications. It called for a more evidence-driven approach to health interventions, warning that ill-conceived policies could lead to unintended economic consequences.