Nigeria’s newly approved 2026 Fiscal Policy Measures and Tariff Amendments have ignited fresh controversy, with civil society groups warning that the country’s tobacco tax regime may do more harm than good.
The policy, introduced by the Federal Government through an official circular, outlines adjustments to excise duties, supplementary ECOWAS Common External Tariff measures, and a Green Tax Surcharge, all of which took effect from April 1, 2026.
However, strong concerns have emerged over the structure of excise duties on cigarettes and tobacco products, which critics describe as weak and incapable of delivering meaningful public health outcomes.
In a statement signed by Auwal Ibrahim Musa, Executive Director of the Civil Society Legislative Advocacy Centre, the organisation faulted the government’s approach, arguing that the measures fall short of global best practices.
At the centre of the criticism is the retention of a 30 per cent ad valorem excise duty alongside marginal annual increases of N1.00 on the specific component over a three year period spanning 2026 to 2028.
CISLAC maintained that such incremental adjustments are grossly inadequate, especially when weighed against Nigeria’s rising inflation, which continues to erode the real value of the tax increases.
The group noted that while cigarette taxes rose modestly from N5.20 per stick in 2024, the approved increment of N0.80 for 2026 reflects a growth rate that trails behind the country’s inflation level of over 15 per cent.
This, it argued, effectively makes tobacco products more affordable in real terms, undermining the fundamental objective of using taxation as a deterrent against consumption.
Further compounding the issue is Nigeria’s failure to align with regional standards set by the Economic Community of West African States, which recommends a specific excise tax benchmark equivalent to 0.40 US dollars per pack of cigarettes.
By CISLAC’s estimates, Nigeria’s current trajectory means the country would achieve less than 30 per cent of this benchmark even at the peak of the new tax regime in 2028.
The implication, according to the organisation, is that Nigeria risks lagging behind its regional peers despite being the largest tobacco market within West Africa.
Critics further contend that the policy disproportionately favours the tobacco industry by creating a predictable and relatively lenient fiscal environment that allows companies to sustain high profit margins.
They warn that such a framework could lead to increased tobacco consumption, particularly among young people, while also deepening health inequalities and economic burdens on low income households.
The policy has also been described as inconsistent with Nigeria’s obligations under the World Health Organization Framework Convention on Tobacco Control, especially Article 6, which advocates strong price and tax measures to reduce tobacco demand.
Beyond health implications, stakeholders argue that the regime contradicts broader fiscal reform efforts aimed at boosting government revenue and discouraging harmful consumption patterns.
Observers say the development raises questions about the government’s commitment to its own policy agenda, particularly promises to deploy health taxes as a tool for funding universal healthcare and safeguarding public wellbeing.
CISLAC has therefore called on the government to urgently review the regime, urging alignment with ECOWAS directives, insulation of policy processes from industry influence, and adoption of a more robust, inflation adjusted excise framework.
The group stressed that failure to act decisively would not be a neutral policy stance but a deliberate choice that sustains addiction, fuels inequality, and exposes millions of Nigerians to preventable health risks.