The Civil Society Legislative Advocacy Centre (CISLAC) has criticised the Federal Government’s newly approved 2026 Fiscal Policy Measures and Tariff Amendments, describing the tobacco tax framework as weak and skewed in favour of the tobacco industry at the expense of public health.
The policy, which took effect on April 1, 2026, includes provisions on ECOWAS Common External Tariff measures, excise duties on non-alcoholic beverages and tobacco products, as well as a Green Tax Surcharge. However, CISLAC expressed concern that the excise duty structure for cigarettes and tobacco products fails to significantly curb consumption.
According to the organisation, the three-year tax regime covering 2026 to 2028 retains a 30 percent ad-valorem excise component from the previous cycle, with only marginal increases of ₦1 annually on the specific excise component.
CISLAC argued that the increments fall below inflation levels and are insufficient to reduce tobacco affordability. It noted that while cigarette taxes rose by about 13 percent within the review period, Nigeria’s inflation rate stood at over 15 percent, effectively eroding the intended impact of the tax adjustments.
The group also pointed out that Nigeria remains significantly below the ECOWAS benchmark for tobacco taxation. It explained that even at the peak of the current regime in 2028, the country would only achieve less than one-third of the recommended specific excise rate for cigarette packs.
CISLAC further alleged that the policy disproportionately benefits the tobacco industry by enabling higher profit margins, while increasing access to tobacco products, particularly among young people. It warned that the current framework could worsen public health outcomes and sustain cycles of poverty linked to tobacco use.
The organisation also criticised the policy as inconsistent with broader fiscal reforms and government commitments to strengthen revenue generation through health taxes. It said the development contradicts Nigeria’s obligations under the World Health Organization Framework Convention on Tobacco Control, particularly provisions aimed at reducing tobacco consumption through taxation.
CISLAC urged the government to align tobacco taxation with ECOWAS directives, shield policy formulation from industry influence, and adopt a more inclusive stakeholder-driven process. It also called for a comprehensive redesign of the excise regime to ensure it serves as an effective public health and revenue tool.
The Executive Director of CISLAC, Auwal Ibrahim Musa Rafsanjani, emphasised the need for stronger tax measures that will reduce tobacco affordability, protect vulnerable populations, and support universal health coverage.