Weak Tobacco Tax regime profits industry not citizens – CISLAC
The Civil Society Advocacy Centre (CISLAC) has decried Nigeria’s newly approved 2026 tobacco tax policy warning that the measure favours industry profits at the expense of citizens’ well-being.
The Executive Director, CISLAC, Auwal Rafsanjani disclosed the organisation’s position on the policy in a statement on Friday in Abuja.
Under the Federal Government’s 2026 Fiscal Policy Measures and Tariff Amendments, which took effect on April 1, a three-year excise duty regime for tobacco products will run until 2028.
NAN also reports that while the policy retains a 30 per cent ad-valorem tax introduced in the previous cycle, it offers only marginal increases of N1 annually on the specific excise component.
CISLAC described the policy as a setback for public health, arguing that it fails to reduce tobacco consumption or align with Nigeria’s obligations under the World Health Organization Framework Convention on Tobacco Control (WHO FCTC).
Rafsanjani said at the heart of the concern is the widening gap between tax increases and inflation.
“In 2024, a cigarette stick was taxed at N5.20. By 2026, the increment rises by just N0.80, about 13 percent, while inflation has climbed above 15 per cent.
“This effectively makes tobacco products more affordable not less, undermining the core purpose of health taxes.
“Comparisons with regional standards further highlight the shortfall. The ECOWAS benchmark recommends a specific excise tax equivalent to about N538 per pack of cigarettes.
“Nigeria’s projected rates, even at their peak in 2028, would only reach around N160 per pack—less than 30 percent of the regional target,” Rafsanjani said.
He argued that the policy disproportionately benefits tobacco companies by preserving high profit margins while limiting government revenue and exposing more Nigerians—particularly young people—to the risks of addiction.
He further said that for low-income households, the continued affordability of tobacco could deepen cycles of poverty and worsen health outcomes.
The CISLAC boss said this policy was in contrast to the government’s broader fiscal stance, noting a contradiction between aggressive reforms in other sectors—such as fuel subsidy removal.
He said it is a departure from the current administration’s campaign promises to deploy health taxes as a tool for funding universal healthcare and discouraging harmful behaviours.
Rafsanjani therefore urged the government to overhaul the tax regime, align it with ECOWAS directives, and adopt a stronger, inflation-adjusted excise system that significantly raises tobacco prices over time.
He also called for greater transparency and insulation of public health policies from industry influence.
Source: NAN
