Last week, the House of Representatives considered a motion to formulate a tax policy on sugar-sweetened beverages (SSBs) in Nigeria. TOPE SUNDAY in this piece seeks what led to the development and how feasible would be.
Nigeria is ranked as the 4th highest soft drinks-consuming country in the world and has an estimated 3.9 million adults between the ages of 20 and 79 years that are diagnosed with diabetes.
According to the National Action on Sugar Reduction (NASR), makes Nigeria the highest prevalence on the African continent. Also, the group, a coalition of civil society organisations (CSOs) advocating for policy measures to address the health risks of consuming sugar-sweetened beverages in Nigeria, its consumption is associated with obesity and non-communicable diseases (NCDs) like Type 2 diabetes, cardiovascular disease, dental caries, liver diseases and up to 11 types of cancer.
The statistics
SSBs are any liquids that are sweetened with various forms of added sugars like brown sugar, corn sweetener, corn syrup, dextrose, fructose, glucose, high-fructose corn syrup, honey, lactose, malt syrup, maltose, molasses, raw sugar, and sucrose.
A document obtained by this reporter from NASR reveals that 38.7 million litres of soft drinks are sold yearly in Nigeria, and that it contributes to the prevalence of the non-communicable diseases (NCDs). Also, the document notes that $4.5 billion is spent by Nigerians on the treatment of diabetes, which is only one of NCDs, adding that 29 per cent of deaths in Nigerians are NCDs-related, which include diabetes, obesity, and cardiovascular diseases.
The advocacy
However, the National Action on Sugar Reduction (NASR), a coalition of non-governmental organisations, in its advocacy against the harmful effect of the SSBs on Nigerians, warned that the lack of excise duties on sugar-sweetened beverages (SSBs) could lead to a spike in the already worsening occurrences of diabetes, obesity, tooth decay, cancer and stroke among others.
To this end, it urged the federal and state governments to place a 20 per cent tax on sugary drinks and sugar-sweetened beverages even as it pleaded with the National Assembly to formulate a tax policy on Sugar Sweetened beverages (SSBs) and foods in the country.
The coalition specifically urged the Minister of Finance to introduce an excise duty of 20 per cent on sugar-sweetened beverages such as carbonated sugary and energy drinks, noting that while the sugar drinks and beverages sector are enjoying freedom from excise duties, more Nigerians, especially children, are consuming these drinks, thereby increasing their risk of obesity.
Reps’ move
However, last week at its plenary, the House of Representatives considered a motion to formulate a tax policy on sugar-sweetened beverages (SSBs). The motion, which was presented by the House Committee Chairman on Pilgrims Affairs, Abubakar Naralaba, argued that SSBs poses harm to the health of Nigerians, and that citizens have a right to be protected from such harms.
While noting that Nigeria is the fourth highest SSBs-consuming country in the world, the motion proposed a five to 10 per cent excise tax on sugar-sweetened beverages.
The tax, as stated in the motion, would be aimed at discouraging SSB consumption and preventing its damaging health effects such as Type 2 diabetes. The motion also included a proposal to mandate the labelling of beverage packaging to make clear the health risks linked to the consumption of SSBs.
After the reading of the motion, the member representing Ukwa East/Ukwa West, Uzoma Nkem-Abonta, requested that the excise duty portion be amended, saying that the cost would fall back on the consumers.
The House presided over by the speaker, Femi Gbajabiamila, noted that the consumption of sugar-sweetened beverages is linked to the development of diabetes and obesity. It added that Nigeria has been ranked as the fourth highest consumer of sugar-sweetened beverages globally owing to their accessibility and affordability.
In its resolution, the House urged the Federal Ministry of Health and relevant agencies to; ban the use of dishonest packaging claims and make it mandatory for all sugar-sweetened beverages to indicate the sugar content and health risks on the products; tax sugar-sweetened beverages by introducing a specific excise duty of five per cent to 10 per cent; mandate the Committees on Health Care Services, and Legislative Compliance to ensure compliance and report within four weeks.
It also urged the Federal Ministry of Health and relevant Agencies to: (a) curtail the excessive consumption of sugary drinks that are considered harmful to human’s health; (b) propose a fiscal measure in the form of a tax policy on sugar-sweetened beverages; (c) tax sugar-sweetened beverages by introducing a specific excise duty of 20 per cent on sugar-sweetened beverages such as carbonated soft drinks and energy drinks and use the tax accrued to fund the prevention and treatment of Type II diabetes in Nigeria.
The House also called for a ban of the use of dishonest packaging claims and made it mandatory for all processed foods and drinks to have warning labels on sugar-sweetened beverages to create consumer’s awareness on the sugar content and health risks.
‘Tax can be used to reduce NCDs’
A Nigerian living with Type 2 diabetes, Comrade Bernard Enyia, in his view, said the “5 to 10%” excise duty tax will compel the producers of these beverages to respond quickly and also encourage citizens to make healthier choices. According to him, it proceeds can be used to reduce the burden of non-communicable diseases as a national response to their prevention and control.
Enyia, the secretary-general of Diabetes Association of Nigeria, said, “The 5 to 10% excise duty tax will compel the producers of these beverages to respond quickly and also encourage citizens to make healthier choices. The proceeds of the tax can be used to reduce the burden of non-communicable diseases as a national response to their prevention and control.
“As a victim of diabetes I have come to realise that SSBs cause irreversible damage to people who drink them. This damage includes complications and premature death, and as such all producers and marketers of these products are culpable.”
Also, a member of NASR, Omei Bongos, described the Reps’ moves as “a good step forward for healthy food policy in Nigeria,” stating that tax “will be part of a comprehensive package of interventions to tackle non-communicable diseases, like hypertension, heart disease and Type 2 diabetes.”
He said, “This is a good step forward for healthy food policy in Nigeria, but there remains much more to be done, there needs to be more awareness to highlight the poor effects of drinking SSBs on health. A tax will be part of a comprehensive package of interventions to tackle non-communicable diseases, NCDs, like hypertension, heart diseases and Type 2 diabetes.”
