CAPPA Urges FG to Raise Tobacco Tax to 100%, Citing ₦526bn Annual Health Cost

The Corporate Accountability and Public Participation Africa (CAPPA) has called on the Federal Government to increase excise taxes on tobacco products to 100 percent, citing a staggering ₦526.4 billion in annual healthcare and productivity losses caused by tobacco-related diseases.

In a strongly worded statement on Thursday, CAPPA warned that the tobacco industry is aggressively targeting Nigerians, especially the youth, with both traditional and novel products such as vapes and e-cigarettes. The group said these products are being deceptively marketed as less harmful, despite mounting evidence of their dangers.

Executive Director of CAPPA, Akinbode Oluwafemi, said tobacco-related illnesses are not only killing nearly 30,000 Nigerians every year, but also placing a heavy strain on the country’s already overstretched health systems and economy.

“The tobacco industry is grooming the next generation of addicts to replace those it has already killed,” Oluwafemi said. “They must be stopped.”

According to CAPPA, data from the Nigerian Tobacco Control Data Initiative shows that over 20 billion cigarettes are consumed annually in Nigeria. Tobacco production, which is concentrated in developing countries like Nigeria, leaves behind significant environmental and health costs, while the profits mostly benefit wealthier nations.

Currently, Nigeria uses a mixed tax regime on tobacco products that includes a 30 percent ad valorem tax and a specific tax of ₦84 per pack of 20 cigarettes. A shisha tax of ₦3,000 per litre or ₦1,000 per kilogram also exists, with an annual increment of ₦500. Despite a 2023 proposal to raise taxes to 50 percent, no changes have been made since the last adjustment in 2022.

CAPPA urged Nigeria to emulate African countries like Senegal, Kenya, and South Africa, which have recently taken bold action against tobacco use. Just last week, Senegal raised its tobacco tax from 70 to 100 percent. Kenya, meanwhile, has imposed a total ban on the importation of vapes and other nicotine-containing products, and South Africa is pushing for laws to ban public smoking and vaping.

Oluwafemi stressed that increasing taxes is a globally recognized method of reducing tobacco consumption and its associated harms.

“Raising tobacco taxes to 100 percent is a proven way to protect lives and save billions in health costs,” he said. “The government must act swiftly.”

CAPPA also recommended that part of the revenue from increased tobacco taxes be earmarked for health promotion, non-communicable disease prevention, and full implementation of the National Tobacco Control Act. The group further called on all levels of government to resist interference from the tobacco industry, which it accused of undermining life-saving policies for profit.