Soft drinks are consumed in huge quantities in both developing and developed continents. According to various statistics and experts, the market is worth several billion dollars. Nigeria’s market was worth US$1.63 billion in 2015, and is predicted to grow to US$9.5 billion (in retail prices) by 2025. With this performance, it is easy to predict that the market will continue to rise due to a variety of causes such as changing consumer lifestyles and the expansion of the entertainment industry.
While it is true that the Nigerian government does not anticipate the market to shrink due to the desire to see every person gainfully employed and raise government revenue, it is also true that the Nigerian government does not expect the market to shrink. However, the same government cannot stay apathetic while many citizens are dying as a result of increased consumption of the drinks, which has been related to a number of non-communicable diseases such as type 2 diabetes, cardiovascular disease, and cancer.
Having seen the extent to which people are developing these diseases and others, “the World Health Organisation (WHO) recommends a 20 percent tax on carbonated and other sugar-sweetened beverages (SSBs) to reduce the risk of people, especially the poor, coming down with illnesses from consumption because they usually cannot afford the cost of treatment.”
In order to adopt the global practice as suggested by the health organization, the Nigerian legislative house debated a bill for several months, which eventually became law in 2021 when President Muhammadu Buhari signed the Finance Act 2021. Since December 31, 2021, when the bill became law, mixed reactions have been trailing it. The law would further strain citizens’ socioeconomic status and have a significant impact on the beverage market, according to everyone from manufacturers to pressure groups and consumers. The proceeds of the levy should be utilized to solve underlying difficulties in the health sector, according to other parties.
As the debate continues across virtual and physical platforms, it is instructive to know that Nigeria seems to be joining the global practice late. Our checks indicate that Morocco, Mauritius, South Africa and Seychelles had earlier joined countries in the developed and developing continents with the introduction of the tax [see Exhibits].
When the prevalence level and economic cost of the indicated ailments are examined, nothing should prevent Nigeria from implementing the tax, according to our expert. Patients with lung cancer, liver cancer, and liver cirrhosis spent an average of 510 152.62 (US$1415.13) [for an average of 49.2 days of terminal care], 308 950.27 (US$857.00), and 238 121.83 (US$660.53) for an average of 16.6 and 21.7 days of terminal care, respectively, according to a recent study.
