Experts Push For 100% Tobacco Tax Hike To Boost Government Revenue, Save Lives

September 25, 2025
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Health and financial policy experts are calling on the Federal Government to double excise taxes on tobacco products, arguing that stronger taxation will both curb smoking and provide badly needed revenue.

Nigeria’s current tax structure—30% ad valorem, ₦84 per cigarette pack, plus levies on other tobacco products—has been described as weak and ineffective. 

According to experts, it not only encourages tobacco use among young people but also limits government income while allowing multinational companies to profit heavily.

Speaking at the validation workshop of the Tobacco Excise Tax Simulation (TETSiM) Report in Abuja, stakeholders emphasized that raising tobacco taxes would significantly cut smoking rates. Research findings presented by University of Cape Town’s Corné van Walbeek showed that a 10% rise in cigarette prices reduces demand by 4–8%, especially among youths who are more sensitive to price increases.

Data presented at the workshop revealed that Nigeria is the third-largest tobacco market in sub-Saharan Africa, with 3.2 million smokers consuming nearly 19 billion cigarettes yearly. 

The health toll is equally alarming—about 16,000 deaths annually and an economic burden estimated at over ₦200 billion.

Experts such as CISLAC’s Solomon Adoga and TJNA’s John Thomi warned that without decisive government action, tobacco use will continue to fuel premature deaths, noting that half of regular smokers die early from cancers, cardiovascular, and lung diseases.

Researchers insisted that excise tax hikes remain the most effective and evidence-based strategy to discourage tobacco use, protect young Nigerians, and improve national revenue. 

They urged the government to implement a 100% increase in line with ECOWAS commitments.

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