Lagos, July 9, 2025 — The Corporate Accountability and Public Participation Africa (CAPPA) has warned that Nigeria is forfeiting more than ₦200 billion each year due to its underwhelming sugary drink tax, emphasizing the urgent need for reform to address health and economic costs.
Presenting at a public health symposium in Lagos, CAPPA’s Executive Director, Akinbode Oluwafemi, outlined that the current ₦10 per litre excise duty, introduced in 2022, has been rendered ineffective by inflation and fails to contribute meaningfully toward lowering consumption or reducing health burdens .
Drawing from CAPPA-commissioned simulations with the Centre for the Study of the Economies of Africa (CSEA), Oluwafemi highlighted that Nigeria spends roughly $2.37 billion (≈ ₦3.7 trillion) annually managing obesity and related non-communicable diseases (NCDs), a proportion of which—estimated at over ₦200 billion—is exacerbated by sugary drink consumption .
CAPPA recommends a steep escalation of the levy to between ₦100 and ₦130 per litre, aligning with World Health Organization guidelines that call for a tax representing at least 20% of retail price. Such a policy, they argue, would curb consumption, reduce NCD-related costs, and generate substantial revenue for healthcare investment .
Still, critics like ThinkBusiness Africa argue that a 1,200% jump to ₦130 per litre could harm SMEs in the beverage industry and lacks credible evaluation of the existing tax framework .
