The Corporate Accountability and Public Participation Africa (CAPPA) has welcomed the Federal Government’s plan to earmark revenues from excise taxes on alcohol, tobacco, and sugar-sweetened beverages (SSBs) for health financing.
The move, CAPPA said, offers the Bola Ahmed Tinubu administration an opportunity to secure sustainable funding for Nigeria’s fragile healthcare system while addressing the country’s rising burden of non-communicable diseases (NCDs).
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At a national health-financing dialogue held in Abuja, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, disclosed that the government is finalising a draft policy to channel revenues from the so-called “SIN taxes” into healthcare.
According to him, the draft will soon be submitted to the Minister of Health and Social Welfare for approval.
Nigeria is currently battling inadequate public health financing and increasing cases of NCDs, including diabetes, cardiovascular diseases, and cancers.
Reports from both local experts and the World Health Organisation (WHO) show that nearly 30 percent of deaths in the country are linked to lifestyle diseases, largely driven by excessive consumption of sugary drinks, alcohol, tobacco, and salty foods.
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The WHO has urged member states, including Nigeria, to raise taxes on unhealthy products by up to 50 percent over the next decade as part of its global “3 by 35 Initiative.”
The organisation argues that such measures would cut harmful consumption, generate critical revenues, and prevent millions of premature deaths worldwide.
In a statement,CAPPA described the government’s draft policy as a step in the right direction but insisted that the effectiveness of health taxes would depend on their rate and scope.
Akinbode Oluwafemi, Executive Director of CAPPA, said the current N10 per litre tax on sugary drinks—introduced under the 2021 Finance Act—is too low to influence consumer behaviour or raise meaningful revenue.
“At N10 per litre, the levy translates to less than one percent of the retail price of most soft drinks.
This token measure cannot discourage excessive consumption or offset the rising healthcare costs of treating SSB-related diseases,” he said.
Oluwafemi recommended that Nigeria raise the SSB tax to at least N130 per litre, indexed to inflation.
According to estimates from the Centre for the Study of the Economies of Africa (CSEA), such an increase could generate up to N729 billion annually, more than covering the N493.3 billion the country currently spends each year on treating SSB-related conditions such as diabetes and heart disease.
He added that higher taxation would not only reduce consumption but also encourage manufacturers to reformulate products with less sugar, ultimately promoting healthier diets.
Beyond sugary drinks, CAPPA also called for stronger excise taxes on tobacco and alcohol, stressing that rates must be high enough to reduce harmful consumption and protect public health.