Nigeria’s Minister of State for Health, Olorunnimbe Mamora, has said the government increased the tax on cigarettes from 20 to 30 percent in June to dissuade Nigerians from tobacco consumption.
The rate of ad valorem tax was 10% until June 1 when it was raised to 30%. Additionally, the government increased the excise tax on cigarettes from NGN58 for each pack of 20 sticks to NGN84 ($0.20). In 2023 and 2024, respectively, the excise duty is to rise to NGN94 per pack and NGN104 per pack.
Shisha tobacco’s tax, which is presently NGN3,000 per liter and NGN1,000 per kilogram, will rise by NGN500 per year.
According to Minister of State for Health Olorunimbe Mamora, “This pro-health tax is a good public health control approach against behavioral risk factors as it can lower demand and use of tobacco products.”
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“It will also prompt tobacco users to switch spending their resources on tobacco products to healthy alternatives such as education, health and others.”
In compliance with the National Tobacco Act (2015) and Regulations (2019), the government has also commenced screening and issuing operational licenses to qualifying tobacco businesses.
The new licensing guideline requires strict adherence to regulations requiring graphic health warnings on tobacco product packaging.
According to Mamora, about 4.5 million Nigerians 15 years and older use tobacco products, and about 3.1 million are current smokers.