Expert Advocates ‘Sin Tax’ to Fund Health Insurance and Achieve Universal Health Coverage
Dr. Tunji Akintade, former Chairman of the Association of Nigeria Private Medical Practitioners, has proposed the introduction of a ‘sin tax’ to finance health insurance and achieve Universal Health Coverage (UHC) in Nigeria.
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In an interview with the News Agency of Nigeria, Akintade explained that a ‘sin tax’ is a levy on harmful products like sugary drinks, alcohol, tobacco, and gambling, which can help discourage consumption and generate revenue for the government.
Akintade emphasized that increasing taxes on health-damaging products can reduce their consumption, leading to a decrease in long-term morbidity and mortality from non-communicable diseases like diabetes, cancer, and kidney diseases. He noted that the current reliance on premiums to drive health insurance financing has hindered Nigeria’s progress towards UHC, as out-of-pocket spending puts undue financial pressure on citizens.
The physician pointed out that no country has achieved UHC through premiums alone, and that taxes are a more effective way to fund health insurance. He cited examples of countries like Ghana and Norway, which have made significant progress towards UHC through taxation. Akintade appealed to the government to expand the tax net to capture more businesses, especially in the informal sector, to ensure a robust and effective tax system and health insurance that saves lives and reduces morbidity.
He commended the Federal Government for establishing the Vulnerable Group Fund to ensure health insurance coverage for 83 million poor Nigerians who cannot afford premiums, and urged the National Health Insurance Authority to enhance such initiatives to impact more citizens.
