Nigeria’s proposed sugar tax hike sparks industry pushback over economic impact, data validity 

NIGERIA – Beverage manufacturers in Nigeria have raised alarm over a proposed increase in sugar-sweetened beverage (SSB) taxation from ₦10 (US$0.0065) to ₦130 (US$0.084) per litre, a move recommended by the Corporate Accountability and Public Participation Africa (CAPPA). 

The proposed hike aims to address rising obesity and Type 2 diabetes rates, especially among youth. 

However, the policy has drawn strong opposition from ThinkBusiness Africa, a policy think tank, which argues the recommendation lacks adequate data support and could cripple local manufacturers.  

Speaking at a convening in Lagos, Ogho Okiti, CEO of ThinkBusiness Africa, criticised the proposal, stating it fails to consider the multifactorial nature of dietary health. 

“Dietary choices are influenced by various factors such as urbanisation, income, education, and lifestyle habits,” Okiti said. “Focusing solely on SSBs oversimplifies a complex public health issue.” 

CAPPA’s May 2024 report, Junk on Our Plates: Exposing Deceptive Marketing of Unhealthy Foods Across Seven States in Nigeria, calls for new measures to reduce SSB consumption, citing marketing strategies that allegedly mislead consumers. It highlights a rise in obesity among urban women while identifying adolescent males aged 15–19 as the leading consumers of sugary drinks. 

Okiti criticised the report’s methodology and logic, pointing out contradictions in the data and the policy recommendations.  

“The report justifies a steep tax increase based on obesity among women but targets adolescent males as primary consumers. That inconsistency undermines the rationale for such drastic fiscal action,” he noted. 

He added that no comprehensive performance evaluation has been made of the existing ₦10 per litre tax implemented in 2022, questioning the basis for a proposed 1,200% increase. 

According to the Food and Agriculture Organization, Nigeria’s per capita sugar consumption remains around 8 kg annually—approximately 21 grams per day—still within global safe consumption limits. 

The think tank argues that multiple taxation is already stifling growth in the manufacturing sector. The Manufacturers Association of Nigeria reported in 2023 that over 767 businesses had shut down due to various challenges, including heavy tax burdens. 

“Businesses are the foundation of jobs and economic growth,” Okiti stated. “With taxation already consuming over 45% of revenues, another tax would deter investment and stifle innovation.” 

ThinkBusiness Africa recommends a more holistic public health strategy. Suggestions include strengthening the enforcement of existing National Agency for Food and Drug Administration and Control (NAFDAC) regulations, increasing nutrition education in schools, encouraging physical activity, and cracking down on misleading advertising. 

The group also advocates for a comprehensive national dietary intake study to better understand consumption trends and inform future policymaking. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.