CAPPA Applauds FG Health Tax Policy, Urges Higher Sugary Drinks Duty
The Corporate Accountability and Public Participation Africa (CAPPA) has commended the Federal Government for drafting a policy to channel excise-tax revenues from alcohol, tobacco, and sugary drinks into health financing.
The move, disclosed by Mr Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, at a national health-financing dialogue in Abuja, is expected to boost sustainable funding for Nigeria’s fragile healthcare system.
While welcoming the initiative, CAPPA stressed that Nigeria must go further by significantly raising health taxes to curb rising non-communicable diseases (NCDs), which account for nearly 30 per cent of deaths nationwide.
CAPPA Executive Director, Akinbode Oluwafemi, said the current N10 per litre excise duty on sugary drinks is “grossly inadequate” and urged the government to raise it to at least N130 per litre, adjustable for inflation.
According to expert analysis by the Centre for the Study of the Economies of Africa (CSEA), such an increase could generate up to N729 billion annually, enough to offset the N493.3 billion Nigeria spends each year treating sugar-related illnesses like diabetes and heart disease.
“The impact of this draft policy will only be maximised if the excise duty is raised to an effective threshold that discourages excessive consumption and promotes healthier choices,” Oluwafemi said.
CAPPA also called for stronger tobacco and alcohol taxes, aligned with World Health Organisation (WHO) recommendations that countries raise prices of harmful products by 50 per cent over the next decade to reduce consumption and fund public health.
