Examining Nigeria's 2026 Tobacco Excise Tax Policy: A Public Health and Fiscal Assessment

In recent years, Nigeria’s cigarette excise tax structure has improved, especially through the introduction of a mixed tax structure. Since 2018, the government has introduced several tax policy changes, including adopting a mixed structure that combines specific excise taxes with existing ad valorem taxation. The most recent changes were in 2026 with the introduction of a three-year excise schedule (2026–2028) under the Fiscal Policy Measures (FPM), setting the specific excise tax at ₦6.00 per stick in 2026, with rates scheduled to increase to ₦7.00 in 2027 and ₦8.00 in 2028, while maintaining a 30% ad valorem tax on the cost of production. However, this level of taxation is still below the recommendations of both the WHO and ECOWAS. The current tax regime remains insufficient to substantially reduce cigarette affordability, curb tobacco consumption, and maximise the fiscal and public health benefits that stronger tobacco taxation can deliver. 

This brief was authored by:
Clinton Essang, Boluwatife Alayande, Halimat Abdulrazaq