The Civil Society Legislative Advocacy Centre (CISLAC) has strongly criticized the Federal Government's newly approved 2026 tobacco tax framework, labeling it as weak, ineffective, and biased in favor of the tobacco industry. The organization warns that the policy poses significant risks to public health in Nigeria.
Executive Director's Statement
CISLAC Executive Director, Auwal Ibrahim Musa Rafsanjani, issued a statement on Friday expressing concern that the three-year excise duty regime for tobacco products (2026–2028) fails to meet national health objectives and Nigeria's obligations under the World Health Organization Framework Convention on Tobacco Control (FCTC).
Details of the Tax Framework
The Federal Government had approved the 2026 Fiscal Policy Measures and Tariff Amendments, which include excise duties on tobacco products, non-alcoholic beverages, and a green tax surcharge, effective from April 1, 2026. However, CISLAC argues that the approved structure retains a 30% ad-valorem tax while introducing only marginal annual increases of N1 on the specific excise component. This approach, the group says, will do little to discourage tobacco consumption.
According to CISLAC, the increments fall below prevailing inflation levels, failing to reduce the affordability of tobacco products. Rafsanjani noted that cigarette excise stood at N5.20 per stick in 2024 but rises only slightly under the new regime, representing about a 13% increase compared to an inflation rate of over 15% within the same period. He stated, “This clearly shows a lack of progress in the use of taxation as a tool to reduce tobacco consumption.”
Comparison with ECOWAS Benchmark
CISLAC observed that Nigeria remains significantly below the recommended benchmark set by the Economic Community of West African States (ECOWAS), which prescribes a specific excise tax of $0.40 per pack of cigarettes. At current rates, the country would achieve less than 30% of this benchmark by 2028.
The group warned that the policy effectively makes tobacco products more affordable, particularly for young people, while increasing the risk of addiction and long-term health complications. It also argued that the tax regime contradicts the Federal Government’s broader fiscal reform agenda, especially at a time when citizens are grappling with the impact of subsidy removals and rising living costs.
“It is troubling that an administration pursuing aggressive revenue mobilisation reforms is adopting a lenient approach toward harmful products like tobacco,” the statement noted.
Impact on Health and Economy
CISLAC added that the policy undermines commitments made by the current administration to deploy health taxes as a tool for financing universal health coverage and reducing the consumption of harmful products. The organization warned that the current framework could lead to revenue losses for the government, increased healthcare costs, and a deepening cycle of poverty among low-income households affected by tobacco use.
Recommendations
To address the gaps, CISLAC urged the government to align its tobacco taxation with ECOWAS directives, protect policy formulation from industry influence, and adopt a stronger, inflation-adjusted specific excise tax system in line with global best practices. It called for broader stakeholder engagement in future reviews and emphasized the need to deploy tobacco taxation as a genuine public health and fiscal policy tool.
“Failure to strengthen tobacco taxation is not a neutral policy choice; it is a decision that sustains addiction, deepens inequality, and undermines Nigeria’s public health obligations,” Rafsanjani concluded.
