The Civil Society Legislative Advocacy Centre (CISLAC) has expressed concern over Nigeria’s newly approved 2026 tobacco tax policy, saying it appears to prioritise industry profits over the health and welfare of citizens.
CISLAC Executive Director, Auwal Rafsanjani, made the position known in a statement issued on Friday in Abuja.
The Federal Government’s 2026 Fiscal Policy Measures and Tariff Amendments, which came into effect on April 1, introduced a three-year excise duty framework for tobacco products set to run until 2028. The arrangement retains a 30 per cent ad-valorem tax from the previous cycle while adding only minimal annual increases of N1 on the specific excise component.
The organisation argued that the policy undermines public health goals and falls short of Nigeria’s commitments under the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), particularly in reducing tobacco consumption.
Rafsanjani raised concern over the widening gap between tax adjustments and inflation, noting that tobacco products are becoming relatively more affordable.
He explained that while a cigarette stick was taxed at N5.20 in 2024, the increase by 2026 is just N0.80, representing about 13 per cent, compared to inflation rates exceeding 15 per cent.
According to him, this trend weakens the effectiveness of health taxation policies meant to discourage tobacco use.
He also compared Nigeria’s rates with regional expectations, stating that ECOWAS recommends a specific excise tax equivalent to about N538 per pack of cigarettes, while Nigeria’s projected peak rate by 2028 is around N160 per pack—well below the regional benchmark.
CISLAC maintained that the structure of the policy largely protects tobacco companies by sustaining profit levels while limiting potential public revenue gains and increasing exposure among young people to addiction risks.
It further warned that continued affordability of tobacco products could worsen poverty levels and contribute to declining public health outcomes, particularly among low-income households.
The group also pointed to inconsistencies in government policy direction, contrasting the tobacco tax framework with more aggressive fiscal reforms in other sectors, and questioned its alignment with earlier commitments to use health taxes to support universal healthcare and discourage harmful consumption.
Rafsanjani urged a comprehensive review of the tax system to align it with ECOWAS guidelines, recommending a stronger, inflation-responsive excise structure that would progressively raise tobacco prices.
He also called for greater transparency in policymaking and stronger safeguards to ensure public health decisions are protected from industry influence.