Firm opposes call for increase in sugary beverage tax

Firm opposes call for increase in sugary beverage tax

ThinkBusiness Africa has challenged calls to drastically increase Nigeria’s Sugar-Sweetened Beverage (SSB) tax, offering a data-driven rebuttal to a recent advocacy report by Corporate Accountability and Public Participation Africa (CAPPA).

CAPPA’s report, titled “Junk on Our Plates,” advocated raising the current N10/litre SSB tax to N130/litre, linking sugary drinks to rising obesity, diabetes, and hypertension rates. It also accused beverage companies of manipulating consumers through culturally tailored marketing.

In response, ThinkBusiness Africa criticized the report as statistically flawed and economically unsound. It argued that CAPPA relied on outdated or mismatched data, such as focusing on obesity trends in urban women while recommending policies aimed at adolescent males—the main consumers of sugary beverages.

ThinkBusiness also highlighted that no comprehensive evaluation has been done to measure the effectiveness of the existing N10/litre tax, making a 1,200% increase premature and risky. Dr. Ogho Okiti, CEO of ThinkBusiness Africa, emphasized that policy changes should be evidence-based and warned that such a steep hike could disrupt the economy and erode public trust.

Furthermore, Okiti pointed out the complexity of Nigeria’s beverage ecosystem, which includes large manufacturers and informal retailers, many of whom would be disproportionately affected by stricter tax enforcement. He criticized the singular focus on SSBs in addressing public