Health experts at the recently held Nigeria Health Watch ‘Pro-Health Tax in Nigeria Webinar Series’, themed, ‘Does Nigeria Need a Sugar Tax?’, have expressed the belief that the proposed tax on sweetened drinks will help Nigeria in the fight against non-communicable diseases such as obesity and diabetes. Sunday Ehigiator reports
Recently, the Minister of Finance and Budget Planning, Zainab Ahmed, while presenting the breakdown of the 2022 budget revealed that an excise duty of N10 per litre would be charged on all non-alcoholic, carbonated, and sugar-sweetened beverages.
This development has been met with mixed reactions among members of the public. While some Nigerians think that this development will inflate the prices of beverages, health experts think it is a welcome development long overdue.
According to reactions from the Sugar-Sweetened Beverage (SSB) Industry, the introduction of the sugar tax, “will lead to loss of jobs and livelihoods of millions of already impoverished Nigerians”.
However, speaking at the webinar session, the Minister of state for Health, Dr. Olorunimbe Mamora, assured that the development was meant to raise intervention funds for the health sector, as the proceeds from the tax would be used as an intervention fund for the treatment and prevention measures for Non-communicable Diseases (NCDs) in Nigeria.
According to him, the idea was to create a pull of intervention fund for the care and treatment/preventive measures of NCDs such as Diabetes, Cancer, and Cardiovascular ailments.
He said treating NCDs, such as cancer, costs a lot of money and that many Nigerians have lost their loved ones due to their inability to afford the treatment.
“The idea is to create an avenue for the sustainability of health financing for Non-communicable diseases.
“Earmarking such additional revenues for critical population-based health interventions may contribute to rapidly rebuilding a resilient Nigerian health system.
“We are all aware of the scarce resources available to us as a nation. Even with scarce resources, there are competing needs. We have an important role to play in exploring mechanisms to galvanise extra revenue for the health sector in providing services not just for physical structure but for services rendered by human resources.
“Not just mobilise these resources but to make sure that they are reinvested in the health sector, on a sustainable basis.
“Pro health tax is a low-hanging fruit because we can use it to reduce the burden of NCDs.
“The realities of diminishing resources are with us and we have no choice but to act now and in doing that we have to commit ourselves more than before to enlist the support of all the stakeholders so that we establish partnerships that will help us push this very important issue.
“In so doing, we are not just working for ourselves but for a healthier society and that will improve the productivity of the system. Most importantly, gathering the resources and using them sustainably.”
Also speaking, Senior Health Specialist for World Bank, Dr. Kate Mandeville, who spoke from Beijing China, said the development was a huge step forward.
“I know there will be opposition. Many countries have joined in introducing sugar tax because they have seen how important it is to improve the health of the population and revenue.”
Mandeville revealed that no fewer than 66 countries all around the world now have excise tax in place, meaning there is a difference in price between sugary drinks and ordinary water.
“Why are countries targeting sugar drinks? There is no nutritious benefit. They spike blood glucose quickly and affect metabolism thereby causing diabetes and metabolic syndrome. If you take a sugar drink, it is not compensated anywhere because it goes straight into the bloodstream.
“In comparison with tobacco and alcohol, the evidence now that SSB causes chronic diseases and sudden death is solid.”
Mandeville equally raised concern that consumption of SSB is increasing despite the evidence that it causes cancer, diabetes, and tooth decay amongst many others.
She expressed worry that as consumption drops off in developed countries, there is a rise in developing countries.
“Mexico uniform SSB tax imposed a 12 per cent increase in cost. There is a debate in Nigerian about what products will be included. The Mexico example can be taken. There was a considerable reduction in sales and there was no negative effect on employment. There was a decrease in weight of adolescent girls and a 43 per cent decrease in consumption.”
According to the medical expert, there are tested and workable complementary measures Nigeria can take that work in other countries such as Mexico and South Africa.
These, she said, include, “raising public awareness on why SSB is unhealthy and their consumption should be reduced, increase retail prices, and incentivise nonprice industry response such as reformulation, resizing and so on.
“Another success story in the United Kingdom (U.K.). It has become evident that SSB tax can evolve. It is possible to do that in Nigeria. It means those SSBs with higher sugar content will have higher taxes and those with lower sugar content will have lower taxes.
“It worked well in the UK because the volume of business did not change. So people will still drink SSB but switched from higher sugar-/higher cost to lower sugar/lower cost,” she said.
Also speaking, another Senior Health Specialist at the World Bank and the moderator of the webinar, Dr. Olumide Okunola, said South Africa and Mexico make $140 million and $250 million yearly from the sugar tax.
While he acknowledged that this may look small compared to tobacco and alcohol, he said it was significant in raising additional funds for the government.
“For Nigeria, all these add up to N2.50 Kobo to a bottle of Coca-Cola. It is still very small. So we have to make sure that year on year, we can raise the tax,” he said.
Earlier, while laying a background to the discussion, the Chief Executive Officer, Nigeria Health Watch, Vivianne Ihekweazu, said Sugar-Sweetened Beverages are one of the main drivers of obesity and Diabetes Mellitus (DM) in Nigeria.
She said data indicate that the prevalence of DM in Nigeria is about six per cent suggesting that 11.2 million Nigerians (one out of every 17 adults) are living with the disease.
Ihekweazu said the webinar was aimed at providing background information on SSB taxes, the evidence base for their use in reducing consumption of SSB, and providing insight into international experiences in the introduction of SSB taxes.
She noted that the webinar was also aimed at presenting an overview of the newly introduced ‘sugar tax’ in Nigeria and highlighting potential opportunities to amplify the health benefits of the tax through earmarking as well as identify and discuss strategies to overcome industry opposition to SSB taxes.
In his Special Guest remarks, Chairman of FATE Foundation and co-founder of Guaranty Trust Bank (GTB), Fola Adebola, said: “It is part of what makes a society, pursuing what is greater than us because we are thinking of how the society can be better.
“Reducing tobacco, alcohol and sugary beverages can prevent sudden deaths in Nigeria. Prevention is better than cure. If we find people healthy and alive, our output and productivity are improved.
“I am suggesting that whatever revenue should be put into improving the welfare of our citizens. I align with the policy, which though underutilized but highly effective.
“These taxes should be channeled into the improvement of the health ecosystem so that when consumers fall sick, we should have facilities to take care of them. Illness and death are bad job providers and thus counters the argument that people will lose jobs.
“I support the policy. The obstacles are very high but we will scale them,” he said.
Quote
“The development was meant to raise intervention funds for the health sector, as the proceeds from the tax would be used as an intervention fund for the treatment and prevention measures for Non-communicable Diseases (NCDs) in Nigeria”
