By Abdullahi Alhassan, Kaduna The Civil Society Legislative Advocacy Centre (CISLAC) has criticised the Federal Government’s n...
By Abdullahi Alhassan, Kaduna
The Civil Society Legislative Advocacy Centre (CISLAC) has criticised the Federal Government’s newly approved 2026 tobacco tax regime, describing it as “alarmingly weak” and a setback for public health in Nigeria.
The group said the policy, contained in the 2026 Fiscal Policy Measures and Tariff Amendments circular effective April 1, 2026, fails to curb tobacco consumption and undermines government revenue mobilisation efforts.
CISLAC noted that while the new regime introduces minimal annual increases of N1.00 on the specific excise component of cigarettes, it retains the 30 percent ad-valorem excise tax structure that was in place under the 2023–2025 regime.
According to the organisation, the adjustments do not match the rate of inflation and leave tobacco products more affordable at a time when other essential goods have become costlier.
The civil society group highlighted that the specific excise on a stick of cigarette was N5.20 in 2024, the final year of the previous regime. Under the new plan, only an additional N0.80 will be added in 2026.
It pointed out that this represents a 13 percent increase over two years, while Nigeria’s inflation rate currently stands at 15.06 percent. CISLAC said the disparity shows that tax is not being used effectively to reduce the affordability of tobacco.
The group also raised concerns that Nigeria remains far below the ECOWAS benchmark of 0.40 US dollars as the recommended specific excise tax per pack of cigarettes.
With the current exchange rate, the ECOWAS benchmark translates to about N538 per pack. In contrast, CISLAC calculated that Nigeria’s regime would yield only N120 per pack in 2026, N140 in 2027, and N160 in 2028 at the highest point of the three-year cycle.
At N160, the group said Nigeria would achieve just 29.7 percent of the ECOWAS recommendation, despite being the largest tobacco market and economic leader in the region.
CISLAC argued that the policy primarily benefits the tobacco industry, which already operates with high profit margins, while the government forgoes potential revenue.
It warned that the low taxation makes cigarettes cheaper for children and youth, increasing their risk of addiction, while low-income households continue to bear the burden of tobacco-related poverty and disease.
The organisation further stated that the regime contradicts the Tinubu administration’s manifesto commitment to use health taxes to finance universal health coverage and discourage consumption of harmful products.
CISLAC said it was inconsistent for a government that had removed fuel and electricity subsidies to apply weak taxation to an industry that produces harmful products like tobacco and sugar-sweetened beverages.
It also noted that the policy falls short of Nigeria’s obligations under Article 6 of the WHO Framework Convention on Tobacco Control (WHO FCTC), to which the country is a signatory.
Article 6 of the WHO FCTC requires state parties to adopt tax policies that reduce tobacco affordability and protect public health, a standard CISLAC said Nigeria has not met.
The group maintained that failure to strengthen tobacco taxation is not a neutral policy choice but a decision that sustains addiction, deepens inequality, and increases preventable deaths.
To address the concerns, CISLAC urged the government to move decisively toward the ECOWAS specific excise benchmark as a minimum standard for tobacco taxation.
It also recommended that the government draw lessons from other West African countries where tobacco tax policies are gaining traction and delivering both health and fiscal outcomes.
CISLAC further called for stronger safeguards to protect tobacco tax policy from industry interference, in line with Nigeria’s WHO FCTC obligations.
The group emphasised the need for a wider stakeholder consultation process in reviewing tobacco tax policies to ensure public health priorities are reflected.
It recommended the adoption of a strong, uniform specific excise tax that is automatically adjusted for inflation and income growth to guarantee sustained real price increases.
CISLAC said such a reform would support universal health coverage, protect children and young people, and reduce the burden of preventable diseases linked to tobacco use.
The organisation concluded that a robust tobacco tax regime is both a fiscal and health policy tool that Nigeria cannot afford to neglect in its development agenda.
No comments