CAPPA Calls for 100% Tobacco Tax Hike in Nigeria to Save Lives, Cut Healthcare Costs

The Corporate Accountability and Public Participation Africa (CAPPA) has called on Nigeria’s federal government to immediately raise the excise tax on tobacco products to 100 percent. This move, CAPPA argues, could save thousands of lives annually and save Nigeria at least ₦526 billion by reducing healthcare costs and productivity losses associated with tobacco-related diseases.

In a statement issued Thursday, CAPPA warned that the tobacco industry continues to aggressively market traditional and new smokeless products—such as vapes and e-cigarettes—to Nigerians. Despite widespread awareness of tobacco’s role in causing serious, often fatal diseases, these products are increasingly targeted at vulnerable populations, especially youths.

The World Health Organization (WHO) links tobacco use to numerous health issues, including lung cancer, COPD, dementia, sudden infant death syndrome (SIDS), birth defects, vision impairment, gastrointestinal diseases, skin damage, fragile bones, and cardiovascular problems.

CAPPA highlighted data from the Nigerian Tobacco Control Data Initiative, revealing that 90 percent of global tobacco production occurs in developing countries like Nigeria. These countries bear most of the environmental costs, while profits predominantly benefit wealthier nations.

Currently, Nigeria’s tobacco consumption is high—over 20 billion cigarettes were consumed annually as of 2018—with approximately 30,000 deaths each year attributed to tobacco-related illnesses. The Centre for the Study of the Economies of Africa (CSEA) estimated that Nigeria spent ₦526.4 billion on treating tobacco-induced diseases in 2019.

Nigeria’s existing tobacco tax system includes a 30 percent ad valorem tax based on the unit cost, a specific excise tax of ₦84 per pack of 20 cigarettes (effective June 2022), and a tax of ₦3,000 per litre or ₦1,000 per kilogram for shisha and tobacco products, with a ₦500 annual increase. Although the government proposed raising the tax to 50 percent in April 2023, this has yet to be implemented.

CAPPA urged Nigeria to follow the example of neighboring African countries like Senegal, Kenya, and South Africa, which are adopting stronger tobacco control measures. Recently, Senegal increased tobacco taxes to 100 percent; Kenya banned the importation of tobacco and nicotine products to curb youth addiction; and South Africa proposed stricter regulations on vaping and public smoking.

Akinbode Oluwafemi, CAPPA’s Executive Director, criticized the industry’s efforts to promote vapes and e-cigarettes as “harm reduction,” warning that these products are addictive and harmful. He emphasized that tobacco-related diseases strain Nigeria’s healthcare system, reduce workforce productivity, and push families into poverty.

Oluwafemi called on the government to act swiftly by raising tobacco taxes to 100 percent, which he believes will not only discourage consumption but also generate significant revenue for health promotion and disease prevention efforts. He also urged policymakers to resist industry interference and ensure that tobacco tax revenues support non-communicable disease prevention and overall health initiatives.