The Federal Government is discouraging the consumption of Sugar-Sweetened Beverages (SSB) because it is capable of causing diabetes and other Non- Communicable Diseases (NCDs), an official has said.
The Coordinating Minister of Health and Social Welfare, Dr Ali Pate said this in Abuja on Tuesday at the National Conference on Sugar-Sweetened Beverages (SSB) Tax and Health Financing in Nigeria.
The theme of the conference titled “Health Tax as a Recipe for Improved Healthcare Financing.”
The minister was represented by Mrs Olubunmi Aribeana, the Director, Food and Drug Services Department, Ministry of Health and Social Welfare.
He recalled that the Federal Government introduced SSB tax in 2021 to reduce the consumption of SSB as well as reducing the prevalence of obesity, diabetes and other related diseases.
“Sugar-sweetened beverages (SSBs) are drinks that contain added natural sweeteners, such as table sugar, high-fructose corn syrup, or fruit juice concentrates, all of which have similar metabolic effects.
“The consumption of SSBs has been linked to numerous health risks, including obesity, heart disease, weight gain, type 2 diabetes, kidney diseases, non-alcoholic liver disease, tooth decay, cavities, and gout.
“The health burden of SSB consumption is particularly significant in low- and middle-income countries, where rates of obesity and related health problems are on the rise.”
The minister said the country faced a growing health crisis with SSB-related diseases such as obesity and diabetes, adding that the associated healthcare costs were escalating at an alarming rate.
“Recent reviews and meta-analyses by the International Diabetes Foundation (IDF) show that as of 2021, over 3.6 million people are diabetic with 53 per cent of these citizens undiagnosed; and this number is expected to rise to about five million by the year 2030.
“The cost of treating diabetes per person has surged from an average of N60,000 in 2011 to N800,000 in 2021, and it is projected to exceed N1 Million by 2030.”
According to him, the goal of the SSB tax is to reduce the consumption of these unhealthy beverages, ultimately preventing obesity and its related diseases.
“In 2021, Nigeria joined over 100 countries that have introduced taxes on sugar-sweetened beverages. This tax, embedded in the Finance Act of 2021, levies a N10 tax on each litre of all non-alcoholic, sweetened, and carbonated drinks.
“As we look to the future, we must view the SSB tax as a cornerstone of our strategy to improve public health and healthcare financing.
“By discouraging the consumption of sugar-laden beverages, we aim to reduce the prevalence of obesity and diabetes, and in turn, alleviate the financial burden on our healthcare system.”
According to the minister, this tax serves as a deterrent and generates essential revenue that can be reinvested into healthcare initiatives, particularly preventive measures and the treatment of non-communicable diseases.
“Our vision is a Nigeria where healthier choices are accessible and affordable for all citizens.
“We aspire to create an environment where nutritious alternatives are readily available, empowering individuals to make informed decisions about their diet and overall health.”
The minister called on food and beverage industry, healthcare providers, civil society organisations and other relevant stakeholders to strengthen their collaboration to promote healthier lifestyles and ensure the sustainability of the nation’s health systems.
He said in line with the government’s vision, the 2023 National Policy on Food Safety and Quality and its Implementation Plan also prioritised the consumption of healthy foods.
According to him, the plan specifically expects the government at every level to develop strategies for reducing the consumption of sugar, alcohol, and sodium as well as the elimination of Trans-Fatty Acids (TFAs) in Nigerian diets.
The minister restated the Federal Government’s commitment to ensure food supply chain supports the health and well-being of the population by minimising the risks associated with poor dietary choices.
In his remarks, the Executive Director, Corporate Accountability and Public Participation Africa (CAPPA), Mr Akinbode Oluwafemi, said that the current SSB tax that imposed an excise duty of N10 per litre on all non-alcoholic and sweetened beverages did not meet global standards.
Oluwafemi said, “At N10 per liter, Nigeria’s current tax on SSBs falls short of the World Health Organisation’s recommendation and global best practice of a minimum of 20 per cent of total retail prices.
“In fact, the impact of our current tax rate has been largely eroded by escalating inflationary pressures, rendering it nearly ineffective, hence the need for a re-evaluation.
“This is why, last year, CAPPA in collaboration with the Centre for the Study of Economies of Africa, conducted a simulation study that examined the potential fiscal and public health effects of SSBs in Nigeria, to provide Nigeria-specific data and information to support a re-calibration of the SSB tax rate.
“Findings from this research not only underscored the urgent need to address the public health impact of excessive SSB consumption but also identified an effective tax rate of N130 per litre as the most sustainable peg for realising public health goals.
“After two years of implementing the SSB tax, we strongly advocate, based on available evidence evaluating its impacts, that the Nigerian government should activate all necessary policy measures to increase the tax from N10 to N130 per liter.
“Or government should implement a revised tax structure to 50 per cent of the total retail price rate of SSB products as recommended by the Global Tax Force for Health of which our honourabe minister is a member.
“This adjustment will not only align with the WHO recommendations but also with the 2024 Bloomberg report on effective health taxes.
“Additionally, this increment must be accompanied by a redefinition of SSBs to capture all products that fall within the categorisation, and a resolve to establish a legal framework for earmarking the tax for public health initiatives,” CAPPA boss said.
NAN
