By Ameh Gabriel
The Corporate Accountability and Public Participation Africa (CAPPA) has lauded the Federal Government’s decision to channel excise-tax revenues from alcohol, tobacco, and sugary drinks into health financing, describing it as a bold step toward strengthening Nigeria’s fragile healthcare system.
The policy direction was revealed in Abuja by Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during a national health-financing dialogue. According to him, the initiative is designed to create sustainable funding for health services across the country.
While welcoming the development, CAPPA urged the government to take bolder steps by significantly increasing taxes on unhealthy products, especially sugar-sweetened beverages, to tackle the country’s rising burden of non-communicable diseases (NCDs).
CAPPA’s Executive Director, Mr. Akinbode Oluwafemi, described the current N10 per litre tax on sugary drinks as “grossly inadequate” and recommended raising it to at least N130 per litre, with adjustments for inflation.
A study by the Centre for the Study of the Economies of Africa (CSEA) suggests that such an increase could generate as much as N729 billion annually well above the N493.3 billion Nigeria currently spends on treating sugar-related illnesses such as diabetes, hypertension, and heart disease.
“The impact of this draft policy will only be maximised if excise duty is raised to an effective threshold that discourages excessive consumption and promotes healthier lifestyle choices,” Oluwafemi emphasised.
Beyond sugary drinks, CAPPA also called for stronger taxation of alcohol and tobacco, aligning with World Health Organisation (WHO) recommendations that countries raise the prices of harmful products by at least 50 per cent over the next decade to reduce consumption and expand health funding.
