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More on the Positive Fiscal and Health Effects of Increasing Tobacco Taxes in Nigeria

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posted on 2024-09-05, 21:18 authored by Corné van Walbeek, Adedeji Adeniran, Iraoya Augustine
Nigeria is faced with substantial economic and health burdens caused by tobacco smoking. The economic burden of smoking accounts for approximately 1.3 per cent of Nigeria's GDP. In terms of its health impact, 4.9 per cent of all deaths in 2019 were attributed to smokingrelated diseases. The thousands of Nigerians that die annually from tobacco-induced diseases are no longer able to contribute productively to the economy. Tobacco taxation is one very effective mechanism for reducing the burden of smoking. This paper measures and benchmarks the economic gains and the number of lives that could be saved through increased tobacco taxation in Nigeria. Should the government of Nigeria increase the excise tax to 240 Naira per pack (together with an ad valorem tax of 50 per cent of the CIF/ex-works price), our model predicts that, over 30 years, nearly 150,000 premature deaths could be avoided. This is in addition to the more than 150 per cent increase in government revenue that would also result. The model indicates that the larger the increase in the excise tax, the greater would be its fiscal and public health impact.

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Publisher

Institute of Development Studies

Citation

van Walbeek, C., Adeniran, C. and Augustine, I. (2021) More on the Positive Fiscal and Health Effects of Increasing Tobacco Taxes in Nigeria, African Tax Administration Paper 25, Brighton: ICTD, DOI: 10.19088/ICTD.2021.010

Series

African Tax Administration Paper 25

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  • VoR (Version of Record)

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Other

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Institute of Development Studies

Country

Nigeria

Language

en

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Governance

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Default project::9ce4e4dc-26e9-4d78-96e9-15e4dcac0642::600

Identifier ISBN

978-1-78118-812-5

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    International Centre for Tax and Development

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