The Corporate Accountability and Public Participation Africa, CAPPA has urged the Federal Government to urgently raise the excise tax on tobacco products to 100 percent, warning that continued inaction is costing Nigeria thousands of lives and hundreds of billions of naira annually in healthcare and productivity losses.
In a statement issued Thursday, CAPPA said Nigeria’s current tobacco tax regime remains weak despite overwhelming evidence linking tobacco use to fatal diseases and economic strain.
The group cited findings from the Centre for the Study of the Economies of Africa (CSEA), which revealed that the country spent ₦526.4 billion in 2019 treating tobacco-related illnesses.
“The tobacco industry is having a field day aggressively targeting young Nigerians with vapes and other e-cigarettes under the guise of ‘harm reduction,’” said Akinbode Oluwafemi, Executive Director at CAPPA. “These products are not only addictive but also harmful and the industry knows it.”
According to CAPPA, Nigeria currently employs a mixed excise tax model comprising a 30 percent ad valorem tax and a specific tax of ₦84 per pack of 20 cigarettes.
The system also includes a tax of ₦3,000 per litre or ₦1,000 per kilogramme on shisha and smokeless tobacco, with incremental increases of ₦500 per year. Though the government proposed raising the tax to 50 percent in April 2023, the change has not yet taken effect.
Oluwafemi called for Nigeria to adopt global best practices, pointing to recent developments across Africa. In Senegal, Prime Minister Ousmane Sonko raised tobacco taxes to 100 percent just last week.
Kenya also announced an immediate ban on the importation of vapes and nicotine-containing products, citing a spike in youth addiction. South Africa has proposed legislation to prohibit public smoking and vaping entirely.
“These countries are taking bold steps to protect public health. Nigeria cannot afford to be left behind,” Oluwafemi stated. “Raising taxes is a proven method to discourage consumption and reduce the burden of disease.”
CAPPA warned that over 20 billion cigarettes are consumed annually in Nigeria and nearly 30,000 Nigerians die from tobacco-related conditions each year. Developing nations like Nigeria, it added, bear the brunt of tobacco production’s environmental and health costs while wealthier countries reap most of the profits.
The group also recommended that a portion of the revenue from increased tobacco taxes be ring-fenced for health promotion, prevention of non-communicable diseases (NCDs), and full enforcement of the National Tobacco Control Act.
“Government at all levels must resist tobacco industry interference,” Oluwafemi said. “Protecting Nigerian lives should never take a back seat to corporate profit.”