Nigeria raises excise

New excise duties on tobacco and alcoholic beverages are due to take effect in Nigeria today, according to a story in The Premier Times.
The Minister of Finance, Kemi Adeosun, in March announced that the President, Muhammadu Buhari, had granted a 90-day period of grace to manufacturers of the products concerned.
Adeosun said the imposition of the new excise duties would be spread over three years, from 2018 to 2020 in order to moderate the impact of the price increases.
She said that the increases were aimed at raising government revenues, though she added that they would also reduce tobacco-related diseases and alcohol abuse.
The Times reported that the new duty rate on tobacco was a combination of the existing ad-valorem base rate and a specific element. So, in addition to the 20 percent ad-valorem rate, this year each cigarette would be the subject of a one-naira specific rate – N20 per pack of 20.
The specific element is due to increase next year to N2 per cigarette, or N40 per pack; and in 2020 to N2.90 per cigarette or N58 per pack.
The director-general of the Consumer Protection Council (CPC), Babatunde Irukera, said the decision to increase excise duties was consistent with prevailing global practices.
Meanwhile, Akinbode Oluwafemi, the deputy executive director, Environmental Rights Action of Earth Nigeria, described the decision to increase the excise duty on tobacco as praise-worthy.
However, the president of the Manufacturers Association of Nigeria, Frank Jacobs, expressed fear that the proposed hike might lead to the closure of factories and loss of jobs.