Tobacco Costs Nigeria ₦526bn Annually — CAPPA

By Esther Ososanya

Group urges FG to act like Senegal, Kenya, South Africa as tobacco-related deaths, youth addiction rise

Nigeria is losing over ₦526 billion annually to the treatment of tobacco-related diseases and productivity losses, even as 30,000 citizens die every year due to smoking and tobacco use, according to data presented by the Corporate Accountability and Public Participation Africa (CAPPA).

Citing an analysis by the Centre for the Study of the Economies of Africa (CSEA), CAPPA on Thursday demanded that the Federal Government increase the excise tax on tobacco products to 100 per cent, saying this single policy move could significantly reduce preventable deaths, cut health spending, and protect millions, especially young Nigerians, from addiction.

“A 100% tobacco tax isn’t just a fiscal tool; it’s a life-saving intervention,” said Akinbode Oluwafemi, Executive Director of CAPPA. “Every day of delay is costing us human lives and billions of naira.”

Rising Toll, Weak Policy

CAPPA’s warning came amid alarming figures: Nigerians consumed over 20 billion sticks of cigarettes as of 2018, and tobacco-related illnesses are linked to multiple non-communicable diseases (NCDs), including lung cancer, chronic respiratory disease, dementia, stroke, birth defects, and heart disease, according to the World Health Organisation (WHO).

The group criticised Nigeria’s current excise tax regime as inadequate. The country presently applies:

• A 30% ad valorem tax on the production cost of cigarettes,
• A ₦84 specific tax per 20-stick pack (introduced in June 2022),
• A shisha tax of ₦3,000 per litre or ₦1,000 per kg, which increases by ₦500 annually.

Although the federal government proposed a 50% tax rate in 2023, the policy remains unimplemented, leaving Nigeria below global health taxation standards.

Youth Under Attack: Vapes and Deception

CAPPA accused the tobacco industry of deploying deceptive marketing strategies to grow a new generation of addicts by pushing vapes, e-cigarettes, and other smokeless products. The group rejected industry claims of “tobacco harm reduction”, calling it a “dangerous lie” meant to expand their consumer base under the guise of safer alternatives.

“In Nigeria, the tobacco industry is having a field day aggressively targeting young people,” said Oluwafemi. “They’re pushing these products as harmless when they’re just as addictive and just as deadly.”

Africa Responds, Nigeria Lags Behind

While Nigeria continues to hesitate on stronger regulation, peer African nations are taking bold action:

• On August 1, Kenya banned the importation of all nicotine-containing products, including vapes, due to rising youth addiction.
• On August 2, Senegalese Prime Minister Ousmane Sonko raised tobacco taxes from 70% to 100% to curb smoking and fund public health.
• On June 3, South Africa’s Health Department proposed legislation banning vaping and smoking in public spaces after linking vaping vapour to lung damage.

CAPPA urged Nigerian policymakers to align with these bold reforms to protect public health, reduce national healthcare costs, and curb premature deaths.

Policy Demands and Fiscal Opportunity

CAPPA called on the Federal Government to:

• Immediately raise excise tax on tobacco products to 100%.
• Ring-fence part of the revenue for health promotion and non-communicable disease (NCD) prevention,
• Fully implement the National Tobacco Control Act, and
• Resist all forms of tobacco industry interference in policymaking.

“This is not just about higher taxes. It’s about protecting the health of Nigerians and shielding our youth from addiction for the sake of future generations,” Oluwafemi stated.

READ ALSO: Vaping in Nigeria: A Silent Epidemic Hooking the Next Generation

CAPPA also highlighted that 90 per cent of global tobacco production occurs in developing countries like Nigeria, which bear the environmental and health costs while wealthier countries reap most of the profits. It warned that without decisive action, the cycle of poverty, addiction, and disease will continue to deepen.

“Tobacco companies are not just selling products. They’re selling lifelong disease and financial hardship to Nigeria’s most vulnerable communities,” the group said.

With billions lost yearly, thousands dying, and youth increasingly lured into addiction, CAPPA insists that Nigeria’s government can no longer afford to delay bold tobacco control measures. A 100% excise tax, the group argues, offers a cost-effective, proven way to curb the epidemic, save lives, and strengthen the nation’s health and economy.