Key players from government ministries, universities, civil society groups, and international partners gathered in Abuja yesterday for a workshop to review and endorse the Tobacco Excise Tax Simulation (TETSiM) report. The report is meant to guide Nigeria in reshaping its tobacco taxation policy.
The meeting came as Nigeria prepares to update its tobacco tax regime, which expired in May 2025. The new tax plan aims to meet regional and global standards, protect public health, and boost government revenue.
Auwal Musa Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), spoke on the importance of the Tobacco Tax Advocacy project, carried out with Tax Justice Network Africa (TJNA) and the University of Cape Town (UCT). He said Nigeria has made progress but still has a long way to go to reach global benchmarks.
He explained that excise taxes help make tobacco less affordable, especially for young people, while also raising funds for the government. This brings both health and financial benefits.
Rafsanjani pointed out that under the World Health Organization’s tobacco control rules, price and tax measures are the most effective way to reduce smoking. Nigeria began its tax regime in 2018, but the rates remain too low to change smoking habits. He warned that low taxes make cigarettes cheap, even for children, and could turn Nigeria into a dumping ground for tobacco products compared to other West African countries.
He stressed the importance of the current review being led by the Ministry of Finance and the Tariff Review Board. The TETSiM report, he said, provides evidence-based options to guide the process.
From the Ministry of Finance, Sarah Bwala confirmed the government’s commitment to aligning Nigeria’s tobacco tax with ECOWAS standards. She said the aim was not just to raise money but also to protect public health. Nigeria currently has the lowest excise rates in the region, she added, which needs to change.
Bwala praised the role of civil society in research and advocacy, noting that government alone cannot solve the problem. She said collective action is needed for better health and a stronger economy.
International researcher Corne Walbeek, Director of the Research Unit on the Economics of Excisable Products at UCT, stressed the deadly effect of tobacco. He noted that tobacco kills half of its regular users, about eight million people worldwide each year. He described higher taxes as the best way to reduce smoking.
Walbeek criticized Nigeria’s current tax level of 30 percent of factory price and just ₦104 per pack as far too low. He explained that the TETSiM model shows how tax changes would affect cigarette prices, smoking rates, government revenue, and public health. He said tobacco taxes should be seen as a health tool, not a punishment.
John Thomi, Policy Officer at TJNA, challenged the tobacco industry’s claim that higher taxes cause job losses. He argued that evidence shows reduced tobacco use improves health and shifts spending to other sectors, keeping jobs intact.
Thomi concluded by stressing that there is no proof tobacco taxes destroy jobs, but there is clear proof tobacco destroys lives. “We cannot compare a lost job to a lost life,” he said.
