By Chimezie Godfrey
The Civil Society Legislative Advocacy Centre (CISLAC) has strongly criticised the Federal Government’s newly approved 2026 fiscal policy measures, warning that the tobacco tax regime will favour industry profits while exposing millions of Nigerians to increased health risks.
In a statement signed by its Executive Director, Auwal Ibrahim Musa, CISLAC described the tobacco excise framework embedded in the 2026 Fiscal Policy Measures and Tariff Amendments as “alarmingly weak” and incapable of achieving its core public health objectives.
The Federal Government had, through a circular, approved the implementation of the new fiscal regime effective April 1, 2026, covering supplementary ECOWAS Common External Tariff measures, excise duties on non-alcoholic beverages and tobacco products, as well as a Green Tax Surcharge.
However, CISLAC argued that the tobacco component of the policy falls significantly short of global and regional standards, particularly in addressing the growing burden of tobacco-related diseases in Nigeria.
According to the organisation, the three-year tax regime spanning 2026 to 2028 retains the 30 per cent ad-valorem excise structure introduced in the 2023–2025 cycle, while proposing only marginal increases of N1 annually on the specific excise component.
“This level of increment is grossly inadequate when placed against prevailing inflationary trends and the rising cost of living,” Rafsanjani stated, warning that the policy effectively weakens the use of taxation as a tool to reduce tobacco consumption.
He noted that while the previous regime pegged the excise rate per cigarette stick at N5.20 in 2024, the new framework proposes an increment of just N0.80 in 2026 — a figure CISLAC says is overshadowed by Nigeria’s inflation rate, currently estimated at over 15 per cent.
The group further warned that Nigeria remains far below the ECOWAS benchmark for tobacco taxation, which recommends a minimum specific excise tax of 0.40 dollars per pack of cigarettes.
At current projections, CISLAC said Nigeria would only achieve less than 30 per cent of this regional standard even by 2028, raising concerns about the country’s commitment to regional economic and health frameworks.
“The implication is clear — tobacco products will remain relatively affordable, especially to young people, thereby increasing the risk of addiction and long-term health complications,” Rafsanjani added.
CISLAC also accused the Federal Government of indirectly prioritising the interests of tobacco companies, noting that the policy creates a favourable fiscal environment for the industry to maximise profits.
The organisation warned that this could lead to increased tobacco consumption, particularly among youths, while deepening poverty among low-income households already grappling with economic pressures.
Beyond public health concerns, CISLAC argued that the policy contradicts the government’s broader fiscal reform agenda, especially efforts aimed at boosting revenue and eliminating subsidies.
“It is difficult to reconcile a government that has taken bold steps to remove subsidies on fuel and electricity with its reluctance to impose stronger taxes on harmful products like tobacco,” Rafsanjani stated.
He further noted that the policy undermines commitments made in President Bola Tinubu’s manifesto, which explicitly recognised health taxes as a critical tool for funding universal healthcare and reducing harmful consumption.
CISLAC urged the government to urgently review the tax framework, align it with ECOWAS directives, and implement stronger measures that prioritise public health over industry profits.
Tobacco Tax Policy Favours Industry, Endangers Nigerians — CISLAC Slams FG
