The Corporate Accountability and Public Participation Africa (CAPPA) has urged the Federal Government to reject the reported aversion of producers of carbonated drinks to the N10/litre on Sugar-Sweetened Beverages Tax which the government started implementing on June 1, 2022.
This was stated in a press statement issued by Philip Jakpor, the Director of Programmes, on behalf of CAPPA.
The organization noted that firms like the Nigeria Bottling Company, Nigeria Breweries, and Rite Food Limited, among others operating under the umbrella of the Nigeria Association of Small and Medium Enterprises (NASME) had alerted that the new tax, which is embedded in the Finance Act of 2021, will lead to job losses and shutdowns in their lines of operation.
It would be recalled that ₦10 tax is imposed on each litre of all non-alcoholic and sugar-sweetened carbonated drinks produced and sold in the country under the new policy, which was introduced in December 2021.
Reacting to the alarm raised by the firms, CAPPA said that their line of argument is the same as they have always circulated in the media whenever there is legislation that prioritizes the health and wellness of Nigerians ahead of profits.
CAPPA’s Executive Director, Akinbode Oluwafemi said: “While the shutdowns and job losses threat does not come as a shock to the average Nigerian, we are taken aback by the industry deliberately avoiding the statistics of Nigerians suffering from diabetes, obesity, and other illnesses associated with the products they produce.”
Oluwafemi pointed out that carbonated drinks producers are simply out to make money and mislead the public by lumping issues related to the pro-people sugar-sweetened beverages tax with other issues that are not in the same category.
According to him, the industry is ultimately out to scuttle the implementation of the new tax regime.
In 2021, Nigeria ranked fourth in sugar-sweetened beverages consumption globally. The impact of this data on the social and economic spectrum for Nigeria is enormous and a pointer to a dangerous future.
One would wonder if the members of these associations and their agents care about the well-being of their consumers who are predisposed to diabetes and obesity from the daily consumption of their products which have no nutritional value for their body system.
Oluwafemi reiterated that unchecked consumption of Sugar-Sweetened Beverages is associated with many risk factors of Non-Communicable Diseases (NCDs) and by observation alone, there has been an increase in the number of young people coming down with heart-related diseases, obesity, diabetes, and other preventable diseases associated with what they eat.
The CAPPA boss explained that the public health community frowns at the attempt to ridicule the efforts of civil society, government regulatory agencies, and health institutions at curbing the financial and social cost of NCDs in a country where more than 73% of the entire population pay out-of-pocket for health expenses.
Extolling the Nigeria Customs Service (NCS) for its responsiveness in relation to implementing the policy, he urged the government to further increase the taxes by at least 15% which aligns with the World Health Organisation (WHO) recommendations for sugar-sweetened beverages.
The WHO and other global experts recommend that sugary drink taxes should raise the final retail prices of SSB by 20% or greater in order to have a meaningful impact on the reduction of consumption.
CAPPA also encouraged the carbonated drinks producers to adhere to global standards Nigeria is still a far cry from going by the negligible but commendable N10/litre policy.
“We strongly support the current tax regime which is the first step to help Nigerians change their consumption patterns. Our expectation is that the government should ensure its strict enforcement and make sure the carbonated drinks producers comply with the policy”, he added.