CAPPA Urges Federal Government to Hike Tobacco Tax to 100% to Save Lives and Reduce Healthcare Costs

CAPPA Urges Federal Government to Hike Tobacco Tax to 100% to Save Lives and Reduce Healthcare Costs

SEO Riders:

– Nigeria tobacco tax raise to 100%

– CAPPA calls for higher tobacco excise tax

– Health and economic benefits of tobacco tax increase

The advocacy group Corporate Accountability and Public Participation Africa (CAPPA) has called on the Nigerian government to increase the excise tax on tobacco products to 100%, citing the urgent need to cut down smoking-related deaths and alleviate healthcare and productivity costs. Currently, Nigeria imposes a mixed tax system—30% ad valorem tax and a specific excise rate of ₦84 per pack (set in 2022), with planned gradual increases through 2024.

CAPPA highlighted that tobacco-related diseases claim nearly 30,000 lives annually in Nigeria, with the country spending ₦526.4 billion on treatment and associated productivity losses each year. Beyond the health benefits, raising taxes could also curb consumption and discourage the distribution of novel forms like vapes, which continue to expose Nigerians—especially youth—to addiction.

Supporting this position, modelling studies indicate that a 50% increase in tobacco prices could avert over 30,000 deaths in a decade, save approximately ₦597 billion in direct and indirect healthcare costs, and boost tax revenues by roughly ₦369 billion. Another deeper dive into economic impact shows that such a price hike could generate total economic benefits nearing ₦966 billion, with substantial reductions in treatment expenses and productivity losses