The Urgent Need for a 100% Excise Tax on Tobacco in Nigeria
The Corporate Accountability and Public Participation Africa (CAPPA) has issued a strong call to the Federal Government of Nigeria, urging immediate action to increase the excise tax on tobacco products to 100%. This move is aimed at saving thousands of lives and potentially saving at least ₦526 billion annually in healthcare costs and productivity losses. According to CAPPA, this measure would not only curb the devastating impact of tobacco use but also help reduce the burden on Nigeria’s already strained health system.
The Growing Threat of Tobacco Use in Nigeria
Tobacco use remains one of the leading causes of preventable deaths in Nigeria. The World Health Organisation (WHO) has linked tobacco consumption to a wide range of serious health conditions, including lung cancer, chronic obstructive pulmonary disease, dementia, sudden infant death syndrome (SIDS), birth defects, vision loss, gastrointestinal diseases, skin damage, weak bones, and cardiovascular disease. These non-communicable diseases (NCDs) are costly to treat and often lead to long-term disability, affecting both individuals and the broader economy.
CAPPA highlights that the tobacco industry is increasingly targeting Nigerians with traditional and novel smokeless products such as vapes and e-cigarettes. These products, though marketed as safer alternatives, are still harmful and highly addictive. The organization warns that these strategies are designed to lure young people into nicotine addiction, setting them up for a lifetime of health complications.
The Economic and Environmental Impact of Tobacco Production
Data from the Nigerian Tobacco Control Data Initiative reveals that 90% of global tobacco production occurs in developing countries like Nigeria. While these nations bear the environmental and health costs of tobacco production, wealthier countries reap most of the profits. This imbalance raises concerns about the sustainability of tobacco farming and its impact on local communities and ecosystems.
According to government figures, Nigerians consumed over 20 billion cigarette sticks annually as of 2018, with nearly 30,000 deaths each year attributed to tobacco-related diseases. In 2019 alone, Nigeria spent ₦526.4 billion on treating tobacco-related illnesses, highlighting the massive financial burden on the country’s healthcare system.
Current Taxation Policies and Their Limitations
Currently, Nigeria employs a mixed excise tax system on tobacco products. This includes an ad valorem tax of 30% on the unit cost of production, a specific excise tax of ₦84 per pack (20 cigarettes), and a shisha/tobacco tax of ₦3,000 per litre or ₦1,000 per kg, which increases by ₦500 annually. Despite a proposed increase to 50% in April 2023, this policy has yet to be implemented, leaving the current taxation regime unchanged.
CAPPA argues that Nigeria must align with global best practices and learn from African countries like Senegal, Kenya, and South Africa, which have taken stringent measures against tobacco use. These nations are actively working to protect their youth from the dangers of nicotine addiction and the associated health and economic consequences.
Global Examples of Effective Tobacco Control
Senegal recently increased tobacco taxes to 100%, up from 70%, while Kenya imposed an immediate ban on the importation of tobacco and nicotine-containing products, including vapes. This decision was driven by rising youth addiction rates and the need to combat the availability of cheap, imported products that undermine local regulations. Similarly, South Africa proposed new measures to tighten tobacco control, including banning vaping and smoking in public spaces. These actions reflect a growing global recognition of the need for stronger tobacco control policies.
A Call to Action for the Nigerian Government
Akinbode Oluwafemi, Executive Director at CAPPA, emphasized that the tobacco industry is aggressively targeting young Nigerians with misleading marketing strategies. He warned that the industry is using so-called “tobacco harm reduction” tactics to convince the public that vapes and e-cigarettes are safe, despite evidence to the contrary.
Oluwafemi stressed that tobacco-related diseases place a significant strain on Nigeria’s health systems, drain budgets, and reduce workforce productivity. He called on the government to act swiftly and implement a 100% excise tax on tobacco and related products. This measure, he argued, would not only discourage tobacco use but also save billions in healthcare costs.
Additional Recommendations
In addition to raising taxes, CAPPA urged the federal government to allocate a portion of the revenue generated from tobacco taxes toward health promotion, NCD prevention, and the full implementation of the National Tobacco Control Act. It also advised all levels of government to resist interference from the tobacco industry, which continues to undermine life-saving policies for profit.
By taking decisive action, Nigeria can protect its citizens from the devastating effects of tobacco use and build a healthier, more productive future for its population.