March 12, 2024

The potential Fiscal and Health Effects of Sugar-Sweetened Beverage Tax in Nigeria

Using data from a dedicated survey conducted by the Centre for the Study of the Economies of Africa (CSEA) and led by the Corporate Accountability and Public Participation Africa (CAPPA) in 2023 on SSB consumption patterns in Nigeria, this report begins by examining SSB consumption trends, revealing noticeable gender and age disparities.

The study suggests that a raise in SSB tax from the current N10 per liter to N130 per liter has the potential to generate substantial revenue and improved public healthcare in Nigeria. Specifically, the simulation shows that the excise tax revenue is projected to increase by about 927% (amounting to 729 billion naira per year), and this can be earmarked for improving Nigeria’s health system.

In terms of its health impact, it also suggests that mean prevalence of obesity would reduce by 0.46% for male and 0.53% for females. While mean prevalence for overweight would reduce by 0.42% for males and 0.37% for females.

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This Report was first published by CAPPA