Nigerian Group Calls for 100% Increase in Tobacco Tax to Cut Health Costs

Key highlights:

Corporate Accountability and Public Participation Africa (CAPPA) is calling on the Nigerian government to increase taxes on tobacco products to 100%.

Approximately 30,000 Nigerians die from tobacco-related illnesses each year.

Nigeria pays 526 billion naira (approximately $300 million) annually for healthcare costs related to tobacco-related diseases.

The Nigerian government calls for resistance against the tobacco industry's interference in health policies.

According to a report by Vanguard on August 7th, the Corporate Accountability and Public Participation Africa (CAPPA) has warned that the number of deaths caused by tobacco consumption is continuously increasing. The organization is therefore calling on the Nigerian federal government to raise the consumption tax on tobacco products to 100%.

CAPPA stated that this measure could potentially save Nigeria at least 526 billion Naira (approximately $300 million)) in healthcare costs and productivity losses each year, while also protecting public health. Despite tobacco use being a major risk factor for a variety of costly diseases, the tobacco industry is still actively promoting traditional and new smokeless tobacco products, such as e-cigarettes, in Nigeria.

According to data from the World Health Organization (WHO), tobacco consumption is associated with non-communicable diseases such as lung cancer, chronic obstructive pulmonary disease, dementia, sudden infant death syndrome (SIDS), birth defects, vision loss, gastrointestinal diseases, skin damage, osteoporosis, and cardiovascular diseases.

According to the statistics from the Nigeria Tobacco Control Data Initiative, 90% of tobacco production occurs in developing countries like Nigeria. These countries bear the environmental costs of tobacco production, while wealthy nations reap most of the profits. In 2018, Nigeria consumed over 20 billion cigarettes annually, resulting in nearly 30,000 deaths from tobacco-related diseases.

According to analysis from the African Economic Research Consortium (CSEA), Nigeria spent 526 billion naira (approximately 3 billion USD) treating tobacco-related diseases in 2019. Currently, Nigeria has implemented a mixed consumption tax system for tobacco products, including a 30% ad valorem tax on production costs or retail prices, a specific consumption tax of 84 naira (approximately 0.05 USD) per pack of 20 cigarettes starting June 1, 2022, and a tobacco tax of 3000 naira per liter (approximately 2 USD) or 1000 naira per kilogram (approximately 0.7 USD), increasing by 500 naira (approximately 0.3 USD) annually.

Despite the proposal by the federal government in April 2023 to raise tax rates to 50%, this proposal has not yet been implemented and the current system remains unchanged. CAPPA is urging Nigeria to follow the lead of other African countries such as Senegal, Kenya, and South Africa, and take strict measures to protect the younger generation from the impact of addiction, disease, and financial crises.

Akinbode Oluwafemi, the Executive Director of CAPPA, emphasized that the tobacco industry in Nigeria is actively promoting new products, such as e-cigarettes, to young people and misleading the public with the "tobacco harm reduction strategy". Oluwafemi warned that tobacco-related diseases are increasing the pressure on Nigeria's healthcare system, depleting health budgets, reducing productivity, and exacerbating poverty. He stated that the government should take quick action by increasing taxes on tobacco and related products to 100%, as it is an effective measure to prevent use and save on healthcare costs.

In addition, CAPPA is calling on the federal government to allocate a portion of tax revenues towards promoting health, preventing non-communicable diseases, and fully implementing the National Tobacco Control Act. They urge all levels of government to resist interference from the tobacco industry in health policies in order to safeguard public health.