Cigarettes in Nigeria, 2016
One of the key features of the Nigerian cigarette market concerns the fact that it is one of the few in the world where non-duty paid sales were traditionally higher than legitimate volumes. Historically, this situation was brought about by excessively high import duties, but in recent years, despite a situation where import duties have been reduced, the problem has been perpetuated by inefficient border controls and rampant smuggling from neighboring markets such as Benin.
The Nigerian cigarette market improved government efforts to stamp out illegal trade, sales were estimated to have reached 17.5 billion pieces in 2014 with projections for 2015 indicating that sales will reach 18.4 billion pieces. The country's two principal manufacturers are British American Tobacco (Nigeria) Ltd, and the smaller independent International Tobacco Company (ITC) Ltd. BAT accounted for 75% of the duty paid market in 2014 with its Benson & Hedges brand holding around a quarter of sales.
The duty paid market is expected to slowly strengthen assisted by GDP growth and strong expansion in Nigeria's population.
The market will still be affected by the presence of contraband, although industry and government efforts should reduce its profile further, to the benefit of the duty paid sector.
The expected tightening of restrictions on smoking in public is set to have an impact, although its extent remains unquantifiable.
Volumes are forecast to reach 28.0 billion pieces by 2025, 52.3% up on 2015 levels.
In per capita terms, based on current population trends, this will equate to a 20.3% increase to 121 pieces.
Filter cigarettes now dominate, accounting for over 99% of duty paid sales.
Virginia blend brands are popular in the legitimate market, with American blends taking a growing share.
Mentholated brands are also important with around a quarter of sales.
King size/long lengths are now the largest sector with over 90% of sales. The majority of sales are in packs of 20.
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Table of Contents
1. Overview 6
2. Market Size 8
3. Market Structure 13
4. Manufacturers & Brands 15
5. Taxation & Retail Prices 18
5.1. Taxation 18
5.2. Retail Prices 18
6. The Smoking Population 21
7. Production & Trade 24
7.1. Production 24
1.1 Imports 25
7.2. Exports 29
8. Operating Constraints 31
8.1. Advertising Restrictions 31
8.2. Health Warnings 32
8.3. Other Restrictions 33
9. Company Profiles 35
10. Prospects & Forecasts 36
11. Appendix 38
11.1. What is this Report About? 38
11.2. Time Frame 39
11.3. Product Category Coverage 40
11.4. Methodology 41
11.5. About GlobalData 43
11.6. Disclaimer 44
11.7. Contact Us 45
List of Tables
Table 1: Cigarette Consumption, Billion Pieces, 1990-2015 9
Table 2: Duty Paid & Non-Duty Paid Cigarette Consumption, Billion Pieces, 1990-2013 10
Table 3: Per Capita Consumption, 1990-2015 11
Table 4: Cigarette Market by Pack Type, Billion Pieces, 2000-2008 13
Table 5: Cigarette Market by Pack Type, %, 2000-2008 13
Table 6: Manufacturer Sales & Market Shares, billion Pieces, 2000-2015 15
Table 7: Manufacturer Sales & Market Shares, % Volume, 2000-2015 16
Table 8: Brands by Category 19
Table 9: Average Retail Prices of cigarette Brands in Ibadan, Nigeria, May 2013 19
Table 10: Price Index 9Alcohol & Tobacco), 2009-2015 20
Table 11: Smoking Population, 1990-2014 21
Table 12: Smoking Prevalence by Region ( Nigeria), %, 2012 23
Table 13: Cigarette Production, Million Pieces & % 1990-2014 24
Table 14: Imports of Cigarettes, 1990-2014 25
Table 15: Imports by Country of Origin, 2000-2014, Million Pieces 27
Table 16: Imports by Country of Origin, 2000-2014, Million Pieces 28
Table 17: Imports by Country of Origin, 2000-2014, Million Pieces 29
Table 18: Company profile: British American Tobacco (Nigeria) Ltd 35
Table 19: Consumption Forecasts to 2025 37
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