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Nigeria Increases Taxes on Alcohol and Tobacco

Tobacco seriously harms health, it is said. But its producers, exporters, traders and other players continue to have better sales. Same case for alcohol whose excess is harmful. To try to lower the upward curve of this consumption, Nigeria seems to find the solution.

According to a statement released by the presidency, taxes on tobacco and alcohol in Nigeria will be changed as of June 4.


Beyond a general tax of 20% on tobacco, another will be collected on each cigarette sold. The case of alcohol will now also almost be treated the same way. Indeed, the current percentage rate, considered lower by some observers, will be replaced by a fixed rate that will be charged on alcoholic beverages based on volume.

The idea is to help discourage the excess of alcohol and tobacco. In the case of alcohol, the new provisions will surprise the sector. They come as a new plant in the Anheuser-Busch InBev Breweries (AB InBev) is in full development in Sagamu. The Belgian sector has invested $ 250 million in this project. Production is scheduled to start mid-year.

Now they will have to increase the price of drinks to balance against new taxes. “More expensive alcohol and tobacco” will also be deterrent in a country where poverty continues to plague and youth unemployment is persistent.

The World Health Organization (WHO) is keeping a close eye on how alcohol consumption in the world is measured in liters of pure alcohol per year and per capita over the age of 15.

According to the 2017 WHO figures, Nigeria is the second country where alcohol is consumed with an average of 8.9 liters per year and per capita over 15 years.

Behind, Gabon (9, 12 liters) and in front of Uganda (8,33 liters), South Africa (7,77 liters) and Rwanda (7,12 liters). According to WHO, alcohol kills 3.3 million people worldwide every year, more than AIDS, tuberculosis and violence combined.


Written by How Africa

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