Nigeria’s decision to channel revenues from SIN taxes levied on alcohol, tobacco, and sugary drinks into health financing has been described as a step in the right direction, aligning with calls by public health advocates and the World Health Organisation (WHO).
The urgency is clear. Nigerians spend an estimated ₦1.92 trillion ($1.26 billion) annually treating non-communicable diseases (NCDs), which account for nearly 30 percent of all deaths in the country. Tobacco, alcohol, and sugary drinks are among the leading drivers of this burden.
Tobacco use alone is linked to a wide range of illnesses, including cancers, cardiovascular disease, stroke, chronic respiratory conditions, diabetes, and pregnancy complications.
Globally, tobacco kills over seven million people annually, 300,000 of them in Africa. With 80 percent of smokers living in low- and middle-income countries like Nigeria, the tobacco industry continues to profit massively, posting $62 billion in profits in 2015 alone.
Despite these figures, Nigeria’s tobacco control funding remains grossly inadequate. In 2024, the government allocated just ₦13 million to the Tobacco Control Fund (TCF), far below the estimated ₦300 million needed to make it effective.
Also Read: http://NGO Warns Fossil Fuels Pose Grave Health Risks, Urges Insurers to Back Renewables
Advocates argue that Nigeria must adopt innovative financing measures, including holding tobacco companies accountable for the health and economic harm they cause. Canada provides a recent example: in August 2025, after a 27-year legal battle, the Canadian government secured a C$32.5 billion ($23.8 billion) settlement from three tobacco firms, JTI-Macdonald Corp, Rothmans, Benson & Hedges, and Imperial Tobacco Canada.
The deal compensates provinces, territories, and former smokers for decades of healthcare and social costs.
The Canadian outcome mirrors the United States’ landmark 1998 Master Settlement Agreement, which saw tobacco companies agree to pay $206 billion over 25 years.
For Nigeria, these precedents suggest a viable path. In 2023, the Federal Competition and Consumer Protection Commission (FCCPC) fined British American Tobacco parties $110 million for violating health regulations the largest penalty in its history.
Observers say this demonstrates the possibility of legal action at home, but stronger frameworks, robust data on tobacco-related costs, and sustained civil society advocacy are needed to build bigger cases.
Civil society groups such as Corporate Accountability and Public Participation Africa (CAPPA) and the Nigerian Tobacco Control Alliance (NTCA) are already leading the push, while international collaboration could help Nigeria overcome the tobacco industry’s well-funded legal defenses.
Experts also urge Nigeria to adopt a compensation process similar to Canada’s Tobacco Claims mechanism, which enables victims of smoking-related diseases or their families to seek redress without upfront legal costs.
At the same time, campaigners warn that new nicotine products like e-cigarettes, vapes, and heated tobacco are being aggressively marketed to young people as reduced-risk alternatives. They insist any settlement or regulatory framework must directly fund counter-marketing, research, and strict enforcement to curb this trend.
“Nigeria risks losing an entire generation to addiction if it fails to act. But success could not only transform health financing and save lives, it would also send a powerful message across Africa that the era of tobacco impunity is over,” Egbe noted.
