Shisha, Cigarettes, Tobacco Prices Set To Rise In Nigeria, As Buhari Increases Tax By 10%

The tax placed on tobacco products has been reviewed upward by the Federal Government, the Minister of State for Health, Olorunnimbe Mamora, has revealed. He said the move is to curb its usage.

Prices of tobacco products, as well as shisha and cigarettes will rise in response to the increment in tax rate, which moved from 20% to 30%. For instance, 20 sticks of cigarettes was previously taxed at N58, but the rate is up N84 per.

Next year, pack of 20 sticks of cigarettes will be taxed at N94, rising to N104 per pack in 2024. The rate of tobacco was moved up to N3,000 per litre and N1,000 per kilogramme, while N500 will be added to the rate yearly.

The increase in rates of tobacco products will not only raise their market prices, it will also lead to reduction in production, as demands will drop due to the rising cost.

This will also cut down on intake of the products, “It will also protect even babies, children, and women as they are the topmost victims of second-hand smoke” Mamora said.

The tax increment, which took effect on June 1, 2022, will increase government revenue from tobacco products. Commenting on the decision, the minister said, “This new regime increased the ad-valorem tax rate from 20 percent to 30 percent.”

Mamora further explained that, “In addition to the 30 percent ad-valorem, a specific excise rate has been increased from N58 to N84 per pack of 20 sticks of cigarette, and this will further be increased to N94 per pack in 2023; and then N104 per pack in 2024.

“Also, shisha is now taxed at the rate of N3,000 per litre and N1,000 per kilogramme and this will be increased yearly by N500.

“This pro-health tax is an effective public health control measure against behavioural risk factors as it has the capacity to reduce demand and consumption of tobacco products.”

Tobacco companies will undergo screening in order to receive license from the government, as plans to monitor their activities commences.