As smoking deaths increase, the business of tobacco continues to boom in Nigeria
According to Nigeria’s adult tobacco survey, over 20 billion sticks of cigarettes are consumed in the country by 4.5 million adults. This is about 6% of the population. According to the survey, 4.1 million men and 500,000 women smoke in Nigeria, while 6.4 million adults are exposed to smokers.
Nigerian government knows it is dealing with a looming epidemic now and it believes it is addressing it.
Addressing the Eight Session of the Conference of the Parties (COP8), to the World Health Organisation Framework Convention on Tobacco Control (FCTC) in Geneva, Switzerland, Nigeria’s Minister of State for Health, Dr. Osagie Ehanire has reiterated the Federal Government’s commitment towards reducing the use of Tobacco in the country.
In a statement issued by the health ministry, the Minister said that efforts had been made towards the implementation of the National Tobacco Control Act of 2015, which is the national law that domesticates the WHO FCTC.
Already, he said the Nigerian government has carried out multi-sector engagement involving Government and Civil Society Organisations. He added that the Nigeria government had begun mass awareness campaigns on the provisions of the National Tobacco Control Act 2015, to create the enabling environment for enforcement.
Another action the government is taking towards controlling tobacco is the review of the standard for cigarettes to include the complete ban on cigarettes with characterizing flavour, including menthol. Nigerian government added it has ratified the protocol to eliminate illicit trade in Tobacco products adding that the instrument of accession would be finalised and deposited at the United Nations Headquarters.
“Tobacco farming leads to deforestation due to land clearing and curing of Tobacco leaves, it also increases land and water contamination due to extensive pesticide use, among other factors,” he said.
The reality paints a different story
According to the latest financial report for British American Tobacco, a review of the company’s performance in the Eastern Europe, Middle East and Africa region showed while the anti-tobacco policies are affecting the company’s performance in countries such as Ukraine, South Africa, Russia and Iran which are reporting reduced production, the company’s outputs in Nigeria is playing critical roles in covering the deficits recorded elsewhere.
BAT reported: “Higher volume in Nigeria, GCC, Turkey and Algeria was more than offset by reductions in Ukraine, South Africa, Russia and Iran.”
In addition helping the company to avert a sharp reduction of volumes due to reductions brought about by anti-tobacco policies in various parts of the world, Nigeria was also mentioned as a major reason for BAT’s 10% revenue growth in 2016.
“Revenue was up 10.0% at £3,750 million (2015: £3,408 million). This growth was driven by the higher regional volume and pricing notably in Russia, GCC, Nigeria, Turkey and Egypt, more than offsetting the down-trading in South Africa and GCC,” BAT reported.
Tobacco cultivation is also surging in Nigeria
Against the impression created by the minister suggesting tobacco reduction in Nigeria, recent media reports showed in addition to usage, cultivation is also rising in Nigeria.
In June 2018, Vanguard reported an aggressive effort to encourage Nigerian farmers to embrace tobacco cultivation.
The British American Tobacco Nigeria Foundation (BATN) launched a four-year strategic plan to promote wealth creation activities in the agriculture sector as part of efforts at empowering rural Nigerians for a sustainable future.
Dubbed Country Programme 2018 to 2022, BAT is supporting farmers with grants and technical expertise needed to grow tobacco. It has set aside N700 million for this plan.
“We are going to support them with grant and technical expertise so they can become prosperous. Imagine if every smallholder farmer is prosperous, we would have significantly reduced poverty in rural communities and generated employment for thousands unemployed youth in the labour market,” said Kola Jamodu, Chairman of the Foundation.
Unlike Nigerian government’s much talked about awareness campaign on how to reduce tobacco usage, the tobacco industry in Nigeria is aggressively taking the battle off radio, it is directly engaging with stakeholders needed to ensure increased production, consumption and revenue generation.
These efforts by the tobacco company is proving effective.
“Profit from operations was 5.4% higher in 2017, at £1,246 million, driven by the growth in revenue and the foreign exchange tail wind due to the devaluation of sterling,” BAT stated.
Following a sharp drop in the number of smoking related deaths in Nigeria in 2010, the number has been slowly rising since then, claiming more lives in the 50-69 years age group. In Africa, available data also showed Nigeria has the fourth highest number of deaths from secondhand smoke in 2016 affecting mostly under-5s.
In spite of several calls, Nigeria is still dragging its feet in announcing an outright ban of tobacco advertising.
In February 2018, Nigerian senators noted that tobacco products were being promoted within 100 metres of all schools. This prompted a motion on “the Need to Immediately Ban Tobacco Companies from Targeting School Children in Nigeria” sponsored by Sen. Oluremi Tinubu (APC-Lagos), at plenary on Tuesday.
Tinubu lamented that there was a deliberate ploy by Tobacco Companies to position tobacco adverts and signs within 100m of schools to stimulate children and youths into early interest in the use of tobacco products.
She noted that a survey carried out by Nigeria Tobacco Research Group in five states across four geopolitical zones, unearthed the location of Tobacco Products Point of Sales within visible distance of schools. She said that this was contrary to the Framework Convention on Tobacco Control and the National Tobacco Control Act, 2018.
Online sale of tobacco
In May 2017, Nigerian government announced the ban of the sale of cigarettes to individuals below 18. It also banned the sale or offer for sale or distribution of tobacco or tobacco products through mail, internet or other online devices.
Over one year later, the leading ecommerce platforms in Nigeria continue to sell cigarettes and other tobacco products. At the time of filing this report, there are 1,328 cigarette-related items on Konga and 6,055 on Jumia.
Enforcing age restriction is also extremely difficult on the platforms.
Nigeria can do more
The Nigerian government in June, approved new excise duty for tobacco and alcoholic beverages to be spread over a three-year period, from 2018 to 2020. Under the new tax regime, in addition to the 20 per cent value-added tax, each stick of cigarette will attract ₦1 specific rate per stick in 2018; that is, ₦20 per pack of 20 sticks.
In 2019 and 2020, each stick will ₦2 (₦40 per pack) and ₦2.90 (₦58) respectively.
Reviewing Nigeria’s current efforts in controlling tobacco, the Nigerian Tobacco Control Alliance (NTCA) stressed the need for the country to intensify its efforts in the control of tobacco. It noted that Nigeria’s tobacco taxes falls far below the World Health Organisation-recommended standard.
“While the recent increase in excise duty on tobacco products (which amounts to about 17 percent excise tax burden) is a step in the right direction, its effect on tobacco usage, public health and development would be minimal relative to the excise duty on tobacco products recommended by the WHO,” said Akinbode Oluwafemi, NTCA’s board chairman.
“The WHO recommends a tobacco tax policy amounting to about 75 percent excise tax burden; this would yield a larger decrease in tobacco usage most especially among the poor. Thus, the government should introduce more radical tax policies for tobacco products.”