On January 20th, 2022, we hosted our inaugural Twitter Spaces conversation series, “Sugary Drinks Tax: A Healthcare Financing Tool in a Global Health Crisis.” The series aims to communicate the benefits of the newly introduced sugary drinks tax in Nigeria and allow stakeholders to contribute ideas on the effective implementation of the pro-health taxes towards improving public wellbeing. Our guest speaker was Dr. Ola Brown, founder of the Flying Doctor Investment Healthcare Company and a leading health and finance expert.
Below are three key takeaways from our virtual conversation with Dr. Ola Brown:
1. Nigeria has a Health Financing Problem
Nigeria’s health budget is low, and sin taxes could contribute much-needed revenue to the health system. “Nigeria’s federal healthcare budget is about a billion dollars which sounds like a lot of money until you compare it to other healthcare budgets. The UK’s government’s healthcare per person is over $4,000. In America, it is about $9000 per person. In Nigeria, the federal budget is about $6 per person. No matter what health statistic you look at, we perform badly on almost all metrics of healthcare. A lot of people die because we are not spending enough on healthcare. We are some of the highest consumers of sugary drinks in the world; a tax on sugary drinks will generate some income to at least scratch the surface of our healthcare financing problem,” Dr Brown said.
2. Economic costs of non-communicable diseases are high
Non-communicable diseases (NCDs) like diabetes significantly impact national productivity and disproportionately affect poorer people. The International Diabetic Federation (IDF) projected Nigeria’s diabetes-related treatment at 745 billion Naira in 2021. Nigeria’s 6.7% on sugary drinks is still way below the 20% WHO recommendation for sugar-sweetened beverages tax, but it is a step in the right direction. Typically, companies claim that these taxes hurt their bottom lines, but the ultimate duty of the government is to protect its citizens.
3. The tax from sugary drinks should be invested in primary healthcare
The COVID-19 crisis brought Nigeria’s fragile health systems into sharp focus, and it provides an excellent opportunity for advocacy around health care financing. Citizens must hold the government accountable to ensure that the tax generated goes into the public health system, particularly primary healthcare. Revenues from the sugary drinks tax should fund public health, mainly preventive healthcare structures.
“Sugary drinks are precursors for NCDs such as cardiovascular diseases and diabetes. Non-communicable diseases account for one in three Nigerian deaths. Funds from the sugary drinks tax should be invested in primary health care, prevention and treatment of NCDs.”
Dr Ola Brown
Written by Shirley Ewang and Omei Bongos-Ikwue from Gatefield’s Policy, Governance, and Advocacy Practice
