By
Abayomi Sarumi*
There
have been lots of media reports in recent times about the Sugar-Sweetened
Beverages Tax (SSB Tax) which was introduced in the 2021 Financial Act. The Act
which was introduced in December 2021 came into force in June 2022 and has generated
furore in certain quarters ever since, the latest coming from carbonated drinks
producers.
According
to the Financial Act 2021, carbonated drinks, referred to as SSBs now carry #10
per litre tax. This move which is ultimately for the well-being of Nigerians
has been viciously attacked by the producers of sugary drinks, their agents,
and their front groups. The crux of their attack is that ‘the government of
Nigeria is trying to overtax the people for revenue generation’.
This
argument is flying on a well-oiled industry-promoted lie aimed at creating a
veil on people’s faces rather than project the fact that the government is out
to protect the citizenry from consumption of sugary drinks with no nutritional
benefits yet, weighty health impacts.
The
International
Diabetic Federation (IDF)
said that the total diabetes related health expenditure in
Nigeria grossed N745 billion in 2021, a staggering cost for a nation
where many live below the poverty line. The cost of managing health
complications of diabetes is not unconnected to the fact that Nigeria now ranks
fourth on the global list of countries consuming sugary drinks.
From all angles in the ongoing discourse, Nigeria is at the
precipice of a health crisis – both in financial terms and human capacity.
In Nigeria today, more than 77% of the population pay
out-of-pocket for health expenditure. This is a model that is regarded as one
which is not sustainable and only capable of deepening poverty in a society where
poverty is already endemic.
Data available through IDF, Wella Health, and other health bodies
confirm that more than 11 million Nigerians currently live with diabetes with
70% not aware of their medical condition.
Medical conditions like diabetes, obesity, and other
complications associated with unchecked consumption of sugary drinks are in the
category of the largest killer on a global scale. The World Health Organisation
(WHO) noted that more than 41 million people die from Non-Communicable Diseases
(NCDs) with 77% of that staggering death occurring in the Low-and-Medium Income
Countries (LMIC) where Nigeria is also categorized. It further noted that an
unhealthy diet increases the chances of dying from NCD.
In 2019, the world was thrown into a bit of turmoil when the
COVID-19 struck. The fatalities recorded in the period till this moment was mostly
in cases with pre-existing conditions, majorly cardiovascular diseases (CVDs).
Two years on, there is considerable increase in cases of CVDs and NCDS
generally. While we are not out of the woods yet, with reports of new cases as
news emerge from time to time, we must not neglect medical conditions that are
deadly and continue to kill silently.
As different agencies of government prepare to defend their
budget for the year 2023, the National Assembly and the executive arm of government
must do everything possible to retain the SSB tax for the fiscal year even if
they cannot increase it.
The SSB tax is a pro people, pro health tax that would reduce
the demand and ultimately, the consumption of SSBs in Nigeria. However, the
current tax rate has been absorbed by the producer, thereby making it possible
for Nigerians hooked on these products to continue consumption at the same rate
as before the tax was introduced.
For the tax to deliver on its health promises, the retail prices
of sugar sweetened beverages would be increased by 20% or greater, according to
the recommendations of the WHO and other global health experts.
More importantly, the SSB tax is not a burden for the public but
an additional payment only for lovers of ultra-processed sugary drinks. It is
also not a tax that would drive investments away from the country or cause
small businesses to go down since the tax would be transferred to buyers, as
they have always done.
As against the false narrative peddled in the media, the sugar
sweetened beverages tax is only a #10/litre tax on sugar sweetened beverages
and not sugar. This lie has travelled for too long, through deliberate
distortion and misuse of terms.
Claiming that the tax is solely to shore up government’s revenue
is another distortion that has gone too far. The tax would only reduce
consumption when increased and enforced efficiently as the Nigerian Customs
Service (NCS) is currently doing with the tax regime. The revenue generated
from this should be earmarked for NCD treatment and/or properly channeled into
a sustainable health financing framework that would see successive government
improve on it while delivering Universal Health Coverage for the Nigerian
population.
*Sarumi
works for Corporate Accountability and Public Participation Africa (CAPPA).
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