Policy Brief & Alerts

January 22, 2019

Snapshot of Taxes & Prices of Tobacco Products

Nigerian tobacco industry operates within an oligopolistic market structure, with BAT owning 79% of market brands, which allows for price differentiation across brands. However, price variations are also observed between the same brand both within and across regions, which suggests non-market factors could also contribute to the variability. For instance, the sale of cigarettes in […]

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Nigerian tobacco industry operates within an oligopolistic market structure, with BAT owning 79% of market brands, which allows for price differentiation across brands. However, price variations are also observed between the same brand both within and across regions, which suggests non-market factors could also contribute to the variability. For instance, the sale of cigarettes in sticks and the significant distance between production hubs and retail points, which generates asymmetric information, transportation cost and opportunity for arbitrage.




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Nigeria Economic Update (Issue 15)

Nigerian Naira depreciated by 1.2 percent at the parallel foreign exchange market between April 7, 2017 and April 14, 2017. The naira exchanged at N410/$ as against N405/$ the previous week. Despite the CBNs weekly dollar sales to BDCs ($20,000 to each BDC in the review week) and spot market sales of $100 million to SMEs, the nairas depreciated in the week. This may likely be attributable to speculative motives (on the basis that speculators likely anticipate that the CBN forex interventions may not be sustainable).

Net Domestic Credit And Currency In Circulation (CIC):

Net Domestic Credit: Rising net credit to government and private sector have driven the upward trend in NDC, especially post-2008. In 2016Q1, NDC grew largely on the account of the rise in banking sec