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• add tax evasion, illicit trade and industry influence could weaken new regime
From Juliana Taiwo-Obalonye, Abuja
The Civil Society Legislative Advocacy Centre (CISLAC) has warned that weak enforcement, tax evasion and loopholes could keep cigarettes cheap and undermine Nigeria’s new tobacco tax regime, putting public health and expected revenue gains at risk.
CISLAC Executive Director, Auwal Musa Rafsanjani, gave the warning on Tuesday at the Second National Tobacco Tax Summit in Abuja, saying tobacco taxation would not reduce consumption or prevent avoidable deaths unless the government backed the policy with tougher enforcement and transparent revenue administration.
Rafsanjani said Nigeria could not afford to focus only on raising tobacco taxes while leaving under-declaration, illicit trade, tax evasion and undue industry influence unchecked.
“A strong tobacco tax policy on paper means very little if enforcement is weak, revenue administration is opaque, and powerful interests are allowed to undermine implementation,” he said.
He called for “effective administration, transparent revenue collection, strong monitoring, tougher enforcement and credible sanctions” against tax evasion, illicit trade, under-declaration and other abuses.
According to him, the success of the country’s tobacco tax policy should be measured not only by revenue generated but also by its impact on tobacco consumption and public health.
“The success of Nigeria’s tobacco tax policy should not be measured only by how much money government collects, but also by how many lives are protected and how much disease is prevented,” Rafsanjani said.
He said tobacco taxation was “about saving lives before it is about raising revenue,” adding that cheap tobacco contributed to addiction, disease and avoidable healthcare expenditure.
“A government that is serious about public health must also be serious about making harmful tobacco products progressively less affordable,” he added.
Rafsanjani called for greater public accountability, saying Nigerians should know how tobacco taxes are designed, how much revenue is generated, whether tobacco companies comply with tax requirements and what sanctions are imposed for violations.
He also warned against undue industry influence in policymaking.
“Public health policy must not be negotiated away behind closed doors,” he said. “Commercial interests must not be allowed to weaken measures designed to reduce preventable disease and death.”
Rafsanjani said the country had made progress since the first National Tobacco Tax Summit in 2025 but maintained that “the job is far from finished.”
He challenged stakeholders to determine whether tobacco products had become sufficiently less affordable, whether the tax structure was keeping pace with economic realities, whether enforcement agencies were adequately coordinated and whether emerging tobacco and nicotine products were sufficiently taxed and regulated.
“Nigeria does not lack policies. Nigeria often lacks consistent implementation,” he said.
“We therefore need to move from declarations to delivery; from fragmented action to coordinated enforcement; from periodic consultations to sustained accountability; and from good intentions to measurable public health outcomes.”
Rafsanjani said the ultimate test of the summit would be the actions taken by stakeholders after the event.
“The real test will be what government institutions, legislators, regulators, civil society and other stakeholders do after this Summit ends,” he said.
He urged the Federal Ministry of Finance, Federal Ministry of Health, Nigeria Revenue Service, Nigeria Customs Service, National Assembly, regulatory agencies, civil society, researchers, development partners, the media and communities to adopt a coordinated approach to tobacco control.
“Tobacco control cannot be the responsibility of the health sector alone,” he said.
He said weak implementation would expose more Nigerians to addiction, increase healthcare costs for families and place additional pressure on the health system.
“This is why political will matters. This is why enforcement matters. This is why accountability matters. And this is why this Summit matters,” Rafsanjani said.
Tax Justice Network Africa (TJNA), on its part also backed stronger tobacco taxation and urged Nigeria to meet the ECOWAS benchmark while extending health taxes to other excisable products.
TJNA Policy Officer, John Thomi, who delivered a goodwill message on behalf of the network’s Executive Director, said effective tobacco taxation could reduce tobacco consumption and generate domestic resources for health, education and other development priorities.
“At TJNA, we firmly believe that effective tobacco taxation is one of the most impactful public policy measures available to governments,” Thomi said.
He said tobacco taxes were particularly important in Africa, where governments face persistent challenges in financing healthcare and development infrastructure.
“When you are able to put in tobacco tax structures or health tax structures that address and affect affordability, then there is a high likelihood that consumption will reduce,” he said.
“And if consumption reduces, then the number of non-communicable diseases and healthcare costs also reduce.”
Thomi said Nigeria had an opportunity to provide leadership in West Africa by ensuring that its new tobacco tax regime met regional standards.
“Nigeria stands to set the pace by ensuring that it meets the ECOWAS benchmark and by onboarding other excisable products that fall within the health tax bracket,” he said.
“Nigeria cannot only be a big economy in Africa without minding holistic development and protection of its people from such harmful products.”
He said TJNA would continue to support Nigeria through evidence generation, stakeholder engagement, regional knowledge exchange and strategic partnerships, particularly in monitoring the implementation and impact of the new tax measures.
“We hope that as the government rolls out the new recommendations and starts its implementation, we will be able to support, analyse, monitor and evaluate the proposed policies and just see what is the impact,” he said.
Representing the Federal Ministry of Finance, Assistant Director, Tax Policy Department, Mrs Sarah Bwala, said Nigeria’s new tobacco tax regime for 2026–2028, which provides for progressive increases in specific excise tax rates, represented another step towards achieving fiscal and public health objectives.
Bwala said Nigeria had operated a mixed excise tax system on tobacco products since 2018, in line with global best practice and the World Health Organisation Framework Convention on Tobacco Control.
“The recent announcement of the new tobacco tax regime covering the period 2026 to 2028, with progressive increments in specific excise tax rates, represents another important step in the government’s effort to strengthen country fiscal and public health objectives,” she said.
She said tobacco taxation had to balance several objectives, including discouraging consumption, protecting public health, mobilising sustainable revenue and ensuring the efficiency of the tax system.
“The Federal Ministry of Finance recognises that the formulation and implementation of effective tobacco tax policy requires continuous consultation, sound empirical evidence and close collaboration among all relevant stakeholders,” Bwala said.
She urged participants to provide evidence-based recommendations on the impact of the new regime on tobacco control, government revenue, industry operations and the wider economy.
The Nigerian Customs Service pledged support for measures aimed at protecting public health while maintaining predictability and fairness for legitimate businesses.
Its Representative at the summit said effective tobacco control went beyond revenue collection.
“Effective tobacco control is not just about revenue, it is about saving lives, protecting our youth, and ensuring a sustainable future,” he said.
He called for collaboration among government, Customs, industry operators and civil society to strengthen implementation.
The National Assembly also expressed support for tobacco tax reforms.
Speaking on behalf of the joint committees of the National Assembly, a representative said the legislature’s primary responsibility was to represent citizens and support reforms that improve their welfare.
“We would like to commend CISLAC for their continuous effort in making laws, bringing out reforms that would improve the lot of the average Nigerian,” he said.
He added that the tobacco tax reform agenda was consistent with the National Assembly’s responsibility to represent the interests of Nigerians.
