By Paul Effiong, Abuja
The Corporate Accountability and Public Participation Africa,CAPPA, has called on the National Assembly to urgently adopt a robust retail-price–based excise structure on sugar-sweetened beverages,SSBs, arguing that the current ₦10 levy has lost its effectiveness and is no longer serves public-health objectives.
This was the position of CAPPA in its presentation during a Joint Public Hearing on Finance, Custom and Excise on: “A Bill for An Act to Amend Section 2(3) Of Customs, Excise Tariffs etc (Consolidated) Act to Replace the Fixed N10 Per Litre Excise Duty on Non Alcohol Carbordinated Suger-Sweetened Beverage with A percent Levy per litre at Real Price and to Provide For the Earmarking of A Portion of the Review Generated Therefrom Health Promotion and Disease Prevention Programme and Related Matters”.
In a memorandum, presented on behalf of the group by it Executive Director, Akinbode Oluwafemi, urged for a stringent and stronger framework to curb excessive consumption of sugary drinks as well as reduce the growing burden of non-communicable diseases,NCDs, across the country.
Earlier in his presentation, Oluwafemi used the opportunity to outline their key recommendations such as the adoption of a 50 percent levy on the retail price of SSBs, with an absolute minimum floor of 20 percent.
According to CAPPA this is in alignment with World Health Organisation,WHO, guidance and the Bloomberg Task Force on Fiscal Policy for Health.
He, however informed lawmakers that the only price-based system tied to real market values can trigger meaningful reductions in consumption as well as reverse the health risks posed by high sugar intake.
The group further urged lawmakers to earmark revenues generated from the revised SSB tax for public-health programmes, especially those focused on prevention and management of NCDs.
Oluwafemi strongly argued that such earmarking would ensure sustainable financing for essential healthcare interventions and strengthen the country’s response to rising diet-related illnesses.
To ensure accountability and policy effectiveness, CAPPA also recommended the establishment of a national monitoring and evaluation task force to oversee implementation.
The task force,he suggested should be responsible for tracking consumption patterns, enforcing compliance, and measuring both the fiscal and health impact of the new SSB tax regime.
Reaffirming the legitimacy and necessity of the review, the CAPPA Executive Director also described the proposed tax reform as constitutionally sound, economically prudent, and aligned with Nigeria’s international health commitments.
Consequently, the association maintained that adopting the strengthened 50 percent levy backed by mandatory earmarking provisions, which would not only reduce consumption but will also stimulate industry reformulation and help revitalise Nigeria’s overstretched healthcare system.
Earlier in his remarks, the Minister of Finance, Olawale Edun, who was represented by a Director Technical Services in the ministry, Bashir Abdulkadir, said the proposed amendment aligned with his ministry.
The Minister, however drew attention to Section 13 of the Customs, Excise Tariffs, Etc. (Consolidation) Act, noting that it empowered the president as the sole authority to vary rates.
He argued that the ministry was already working on a comprehensive process that would cover SSBs and alcoholic drinks.
In his opening remarks, the Chairman Senate Committee on Finance, Isah Jibrin said the essence of the hearing was to collate stakeholders views that will guide lawmakers to make an inform laws for Nigerians.
While calling for constructive views, the lawmaker said the amendment was armed at protection of health rather than money.
