The World Health Organisation (WHO) has urged governments worldwide to raise the prices of sugary drinks and alcohol. They announced this directive on January 14, 2026, stating that these drinks are too cheap and too easy to get, leading to many health problems and deaths.
The issue is serious. According to two reports, 2.6 million people die each year because of alcohol. Sugary drinks contribute to rising obesity and diabetes rates, which are putting a strain on health systems.
Dr. Tedros Ghebreyesus, the WHO Director-General, explained that current taxes on these products are ineffective because they haven’t kept pace with inflation. In other words, even though drink prices have risen, they haven’t increased enough to discourage people from buying them.
The WHO’s plan is called the “3 by 35” Initiative. The aim is to raise taxes on three unhealthy products: Tobacco, Alcohol, and Sugary Drinks. The goal is to increase the real prices of these items by 50% by the year 2035. The thinking is that if a bottle of soda costs N1,500 instead of N500, people will choose to drink water instead.
Setting the Tax High Enough That People Regulate Their Behaviour
This tax is meant to make people pay for the hidden costs of their choices. For example, when you buy a sugary soda, you pay for the drink itself, but not for the future healthcare costs if you get diabetes. This extra cost is called a “negative externality.”
By increasing taxes on sugary drinks, the government tries to make you pay upfront for those health costs. The World Health Organisation (WHO) cites countries such as the UK and Mexico, where sugar taxes have successfully reduced consumption and supported public health initiatives.
In 2022, Nigeria introduced a N10 tax on sugar-sweetened beverages (SSBs). This was expected to make a big difference, but inflation quickly diminished its impact. Today, that N10 tax on a N500 drink hardly matters.
Currently, there is a strong debate happening in Abuja:
- The Health Advocates: Groups like Corporate Accountability and Public Participation Africa (CAPPA) want the tax raised from N10 to N130 per liter. They warn that we face a serious diabetes problem and need better funding for healthcare.
- The Industry: The Manufacturers Association of Nigeria (MAN) opposes this increase. They claim that such a large tax hike could eliminate 1.5 million jobs. They argue that in a country reliant on small, affordable products, making energy drinks too expensive hurts the poor.
The WHO’s advice is giving the Nigerian government the support it needs to take bold action. The government wants to raise the tax-to-GDP ratio to 18% by 2027, making this advice seem less about health and more about finding new revenue.
We might soon face a future where you will need to spend much more during the holidays. The days of cheap sugar and alcohol are coming to an end. The big question is: will this actually make us healthier, or will it just make us poorer? One thing is clear: the local “Zobo” seller is going to become a very important part of your life.
