Nigeria’s Low Tobacco Taxes Spark Health Concerns, Say Experts

By Abdullahi Alhassan, Kaduna

In a landmark move Key stakeholders from government ministries, academia, civil society organisations and international partners converged at a workshop in Abuja to review and endorse the Tobacco Excise Tax Simulation (TETSiM) report aimed at reshaping Nigeria’s tobacco taxation policy.

The engagement came as Nigeria prepares to revise its tobacco tax regime, which expired in May 2025, with the goal of aligning with regional and global tobacco control benchmarks to safeguard public health and increase government revenue.

Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, emphasised the significance of the Tobacco Tax Advocacy project partnership with Tax Justice Network Africa (TJNA) and the University of Cape Town (UCT).

“While Nigeria is not yet where it should be, measurable progress has been recorded, showing that with more push, Nigeria can meet the regional and global benchmarks for tobacco taxation.”

Rafsanjani elaborated on the importance of excise taxes in reducing tobacco affordability and consumption, especially among the youth, and the dual benefit of improving health outcomes, while generating government revenue.

“Article 6 of the Framework Convention on Tobacco Control clearly sets price and tax measures as the most cost-effective tobacco control strategies. Nigeria began implementing a tobacco tax regime aligned with these guidelines in 2018, combining ad valorem and specific excise taxes, but the rates remain too low to significantly alter consumption patterns,

”Rafsanjani explained. “Low tax rates mean the tobacco industry, with its high-profit margins, can absorb costs without raising prices for consumers, leaving tobacco products cheap and accessible, even to children.

In contrast to other West African countries, Nigeria has one of the lowest tobacco tax rates, risking the country becoming a dumping ground for tobacco products in a liberalised trade environment.”

He stressed the urgency of the ongoing tobacco tax regime review led by the Federal Ministry of Finance and the Tariff Review Board, noting the critical role of the TETSiM report in providing evidence-based policy options.

“This validation workshop reaffirms the need for wide stakeholder consultation in shaping critical policies,” Rafsanjani added. “We expect this tool to support Nigeria’s efforts to review and strengthen tobacco excise taxes to combat tobacco use effectively.”

Representative from Ministry of Finance, Sarah Bwala, affirmed Nigeria’s commitment to revising the excisable goods regime in line with ECOWAS directives. “This validation workshop comes at a critical time as Nigeria undertakes a comprehensive review,” she said. “Our focus is not only on revenue generation but also on protecting public health.

“Nigeria currently has the lowest excise rates in the region, and aligning with harmonised standards, supports sustainable development and reduces tobacco-related health risks.”

Bwala highlighted the essential collaborative role of civil society in advocacy and research, commending CISLAC for leading this initiative. “Government alone cannot achieve these objectives. The active involvement of stakeholders is key to a healthier population and a resilient economy,” she noted.

Providing international research expertise, Director of the Research Unit on the Economics of Excisable Products (REEP) at the University of Cape Town (UCT), Corne Walbeek, underscored the devastating impact of tobacco.

“Tobacco kills half of its regular users every year, contributing to approximately eight million deaths worldwide,” he said. “Increasing excise tax is the most effective measure to reduce tobacco use.

However, Nigeria’s excise taxes on tobacco are very low compared to international benchmarks and ECOWAS directives, which require a minimum excise tax of 50 percent of the pack price plus a specific tax of 40 US cents per pack.

He described Nigeria’s current excise set at just 30 percent of the ex-works value and a mere N104 per pack as grossly insufficient Walbeek explained the purpose of the TETSiM model, saying, “This tool quantifies the likely effects of excise tax changes on cigarette prices, consumption, government revenue, and public health. With Nigeria’s tax policy due for revision next year, this timely study is designed to aid policymakers in constructing a more effective tobacco tax regime.”

He stressed the health motivation behind the excise tax, stating, “This is not a punitive ‘sin tax’ but a health tax designed to encourage smokers to reduce or quit and prevent young people from starting.”

Policy Officer at Tax Justice Network Africa (TJNA), John Thomi, addressed common industry arguments about job losses due to increased tobacco taxes.

“We are here to support CISLAC because the tobacco industry’s claim that job losses will follow tax hikes is a fallacy,” he argued. “Research proves that reducing tobacco consumption leads to healthier populations and allows consumer spending to shift to other sectors of the economy, sustaining jobs elsewhere.”

Thomi asserted that, “there is no evidence of job losses with higher tobacco taxes, but there is undeniable evidence that tobacco kills. We cannot compare a lost life to a lost job.”