Federal Government on Wednesday reiterated its commitment to discouraging the consumption of harmful tobacco products, protecting public health, mobilising sustainable revenue and improving the effectiveness and efficiency of the nation’s tax system.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, gave the assurance in Abuja, at the Second National Tobacco Tax Summit organised by the Civil Society Legislative Advocacy Centre (CISLAC).
While acknowledging that Nigeria has operated a mixed excise tax system on tobacco products since 2018, Oyedele who was represented by Assistant Director, Mrs. Sarah Bwala said the country’s latest tax measures were designed to advance both fiscal and public health objectives.
ALSO READ: Oba of Benin urges political leaders to put national interest above party lines
He said the new tobacco tax regime covering the period 2026 to 2028, with progressive increments in specific excise tax rates, was consistent with global best practices and the recommendations of the World Health Organization Framework Convention on Tobacco Control.
According to him, “in line with the global best practices, and the recommendation of the World Health Organization Framework Convention on Tobacco Control, particularly Article 6, which recognizes tax and price measures as important tools for reducing tobacco consumption,” the new regime represented an important step by the government.
He further explained that “Tobacco taxation remains a critical policy instrument that must be carefully designed to achieve multiple objectives, including discouraging the consumption of harmful tobacco products, protecting public health, mobilizing sustainable revenue, and ensuring the overall effectiveness and efficiency of the tax system.”
The Minister stressed that effective tobacco tax policy could not be formulated in isolation, noting that the Ministry of Finance recognised the need for continuous consultation, empirical evidence and collaboration among relevant stakeholders in developing and implementing the regime.
“It is therefore expected that the deliberation at this summit will provide useful insights and information to the public. It will also provide useful insights into the new tobacco tax regime, including its potential impact on tobacco control, government revenue, industry operation, and the wider economy,” he said.
Oyedele added that the government remained committed to fiscal policies that were equitable, efficient, reasonable and responsive to Nigeria’s developmental needs, while emphasising the need to balance revenue mobilisation with public health and a practical, transparent fiscal environment.
He therefore urged all the participants at the summit to approach the discussions with openness and a shared commitment to producing practical, evidence-based recommendations, expressing optimism that the outcome would contribute to strengthening fiscal policy and improving public health.
Speaking earlier, CISLAC Executive Director, Auwal Musa Rafsanjani, said Nigeria was facing serious public health and fiscal pressures, with families struggling with rising healthcare costs while government continued its search for sustainable domestic revenue.
Rafsanjani said: “Tobacco taxation is not simply a revenue issue. It is a public health intervention, a fiscal justice measure and a tool for protecting lives,” adding that government had a responsibility to use taxation and regulation to reduce consumption and protect citizens, particularly children and young people.
He argued that higher tobacco taxes would have limited impact without effective enforcement, transparent revenue administration, strong monitoring and credible sanctions against tax evasion, illicit trade and under-declaration. “Nigeria therefore needs more than higher taxes. We need effective administration, transparent revenue collection, strong monitoring, tougher enforcement and credible sanctions,” he said.
The CISLAC Executive Director further called for greater accountability in tobacco taxation, insisting that Nigerians should know how taxes were designed, how much revenue was generated, whether companies were complying and what sanctions were imposed for violations.
He also called for stronger safeguards against undue industry influence and said the success of tobacco tax policy should be measured not only by revenue generated but also by lives protected and diseases prevented.
Country Lead, Campaign for Tobacco-Free Kids (CTFK), Dr. Michael Olaniyan, described emerging data on tobacco-related diseases as alarming, saying there were about 1.2 billion tobacco users globally and more than seven million tobacco-related deaths annually.
He said more than 80 per cent of users were in low- and middle-income countries such as Nigeria, warning that the burden was concentrated in countries facing weak laws and institutions.
Representing the Nigeria Customs Service (NCS), Comptroller Excise, Free Trade Zone, I&I, Mr. Abubakar Yunusa, said effective tobacco control required collaboration among government, Customs, industry operators and civil society.
Mr. Yunusa who observed that effective tobacco control required collaboration among government, Customs, industry operators and civil society, maintained that “effective tobacco control is not just about revenue. It is about saving lives, protecting our youths and ensuring a sustainable future,” he said.
Also speaking, Hakilu Abbas, Clerk of the House Committee on Health, who represented the National Assembly Joint Committees on Health, commended CISLAC for its continued advocacy for reforms that would improve the lives of Nigerians.
Mr Abbas who observed that tobacco tax reform aligned with the constitutional responsibility of the National Assembly to represent the people, conveyed the support and goodwill for the Summit.