By Abdullahi Alhassan, Kaduna In a landmark move, key stakeholders from government ministries, academia, civil society organisations, and i...
By Abdullahi Alhassan, Kaduna
In a landmark move, key stakeholders from government ministries, academia, civil society organisations, and international partners gathered in Abuja for a workshop to review and validate the Tobacco Excise Tax Simulation (TETSiM) report, a critical tool aimed at reshaping Nigeria’s tobacco taxation policy.
The engagement comes at a pivotal moment as Nigeria prepares to revise its tobacco tax regime, which expired in May 2025. The goal is to align with regional and global tobacco control benchmarks, safeguard public health, and enhance government revenue.
Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, underscored the importance of the Tobacco Tax Advocacy Project, a partnership with the Tax Justice Network Africa (TJNA) and the University of Cape Town (UCT). He noted that while Nigeria still lags behind in meeting global standards, significant progress has been recorded, and with sustained effort, the country can meet both regional and international benchmarks for tobacco taxation.
Rafsanjani emphasized the critical role of excise taxes in reducing tobacco affordability and consumption, particularly among the youth, while also improving public health outcomes and generating much-needed government revenue. Citing Article 6 of the Framework Convention on Tobacco Control, he explained that price and tax measures remain the most cost-effective strategies for tobacco control. He highlighted that although Nigeria began implementing a dual tobacco tax regime—combining ad valorem and specific excise taxes—in 2018, the rates remain too low to significantly alter consumer behaviour.
He noted that the tobacco industry, with its high profit margins, often absorbs these low taxes without increasing retail prices, thereby keeping tobacco products cheap and accessible—even to minors. Compared to other West African countries, Nigeria has among the lowest tobacco tax rates, which increases the risk of becoming a dumping ground for tobacco products under the region’s liberalized trade framework.
Rafsanjani stressed the urgency of the ongoing review of the tobacco tax regime by the Federal Ministry of Finance and the Tariff Review Board, highlighting the TETSiM report as an evidence-based resource to guide policy reform. He described the validation workshop as a reaffirmation of the importance of wide stakeholder engagement in shaping impactful national policies and expressed hope that the tool would support Nigeria’s efforts to revise and strengthen tobacco excise tax measures.
Speaking on behalf of the Ministry of Finance, Sarah Bwala reiterated the government’s commitment to revising the excisable goods regime in line with ECOWAS directives. She said the workshop comes at a critical time as Nigeria embarks on a comprehensive policy review, with a dual focus on increasing revenue and protecting public health. Bwala acknowledged that Nigeria currently has the lowest excise rates in the region and said that aligning with harmonized standards would promote sustainable development while reducing tobacco-related health risks.
She praised CISLAC for its leadership in driving tobacco tax advocacy, noting that government alone cannot achieve its public health objectives. According to her, the active participation of civil society, researchers, and other stakeholders is essential to building a healthier population and a resilient economy.
Adding an international research perspective, Professor Corné van Walbeek, Director of the Research Unit on the Economics of Excisable Products (REEP) at the University of Cape Town, highlighted the devastating health impact of tobacco, which kills half of its regular users and contributes to approximately eight million deaths globally each year. He stressed that increasing excise tax is the most effective intervention to reduce tobacco use, but Nigeria’s current tax levels fall far below international best practices.
He explained that ECOWAS directives require a minimum excise tax equivalent to 50 percent of the retail price plus a specific tax of 40 US cents per pack. In contrast, Nigeria’s excise tax is set at just 30 percent of the ex-works value and a specific rate of N104 per pack, which he described as grossly inadequate. Walbeek explained that the TETSiM model was developed to help policymakers understand the likely effects of tax changes on cigarette prices, consumption, government revenue, and public health outcomes. With the country’s tax policy due for revision next year, the tool is intended to inform a more effective and evidence-based tobacco taxation framework.
He clarified that excise taxes are not punitive but are designed to protect public health by encouraging smokers to quit and deterring young people from initiating tobacco use. He said the purpose of the tax is health-oriented, not simply revenue-driven.
Also speaking at the event, Policy Officer at the Tax Justice Network Africa, John Thomi, responded to common industry arguments against tobacco tax increases, particularly the claim that higher taxes would result in job losses. Thomi dismissed this narrative as a fallacy, citing research that shows reduced tobacco consumption leads to healthier populations and allows household spending to shift toward other sectors of the economy, which can sustain or even create jobs.
He stressed that there is no credible evidence linking tobacco tax hikes to job losses, but there is overwhelming evidence that tobacco use causes death. “We cannot compare a lost life to a lost job,” Thomi declared.
The workshop concluded with a strong consensus among participants on the urgent need for Nigeria to reform its tobacco tax policies in line with global standards, using tools like TETSiM to drive a data-informed, health-focused approach.
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