Tobacco in Nigeria
Euromonitor International's Tobacco in Nigeria market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 46 | Publication date: Nov 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Increasing number of litigations against tobacco companies
Nigeria has for a long time had a weak legislative framework with regards to tobacco; however this is now changing. Four Nigerian states, the Federal Government and anti-tobacco smoking activists recently instigated legal action against three tobacco companies; British American Tobacco (BAT), Phillip Morris International and International Tobacco Limited. They are claiming NGN5.3 trillion compensation to seek redress for the health damage tobacco caused Nigerian children over the years, and to recoup the cost it incurred in treating citizens with tobacco-related diseases.
Lawsuits negatively impact sales of cigarettes
In 2007, cigarettes sales in Nigeria witnessed a decline due negative publicity for tobacco companies. Despite launching a defence in the form of a media war with anti-tobacco advocates, tobacco companies did not succeed in reversing the declining trend.
Increased awareness of smoking hazards also impacts on volume sales
Thanks to increasing numbers of anti-tobacco awareness campaigns, Nigerians now understand the impact of tobacco products on health. This, coupled with higher cigarette prices, started to hinder volume sales of cigarettes in Nigeria. This trend will continue over the forecast period.
Despite difficult legal challenges, British American Tobacco (Nigeria) Ltd continues to dominate sales
The Nigerian tobacco market is essentially a near-monopoly, with BAT (Nigeria) Ltd holding the lion’s share of sales. The company has long dominated the local Nigerian market, a situation exacerbated since 2003, when it built a new factory. BAT’s dominance stems from the popularity of its brands as a result aggressive media campaigns and company sponsorship deals.
The battle against tobacco companies will intensify over the forecast period
It is expected that the number of lawsuits against tobacco companies will increase significantly over the forecast period. It is also likely that the Federal Government will implement tax and pricing policies to reduce or discourage tobacco consumption. Tobacco companies, especially British American Tobacco (Nigeria), are expected to increase their corporate social responsibility campaigns in a bid to minimise the reaction to the lawsuits. Increases in taxation and litigation are expected to hinder volume growth over the forecast period.
Table of contents
TOBACCO IN NIGERIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Increasing number of litigations against tobacco companies
Lawsuits negatively impact sales of cigarettes
Increased awareness of smoking hazards also impacts on volume sales
Despite difficult legal challenges, British American Tobacco (Nigeria) Ltd continues to dominate sales
The battle against tobacco companies will intensify over the forecast period
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking prevalence in population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Death by Cause
Legislation
Legislation: Nigerian law
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2002-2007
Table 8 Sales of Tobacco by Sector: Value 2002-2007
Table 9 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 10 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 12 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 13 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 16 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 17 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 20 Sales of Cigarettes by Price Band: %Volume Breakdown 2002-2007
Table 21 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2002-2007
Table 22 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2002-2007
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 25 Sales of Cigarettes by Length 2002-2007
Table 26 Sales of Cigarettes by Regular/Slim 2006-2007
Table 27 Sales of Cigarettes by Pack Size 2002-2007
Table 28 Sales of Cigarettes by Pack Type 2002-2007
Table 29 Cigarettes Company Shares 2003-2007
Table 30 Cigarettes Brand Shares 2004-2007
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 35 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2007-2012
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2007-2012
Table 37 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2007-2012
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 40 Forecast Sales of Cigarettes by Length 2007-2012
Table 41 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 42 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 43 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS AND CIGARILLOS
SMOKING TOBACCO
BRITISH AMERICAN TOBACCO (NIGERIA) LTD
Strategic Direction
Key Facts
Summary 2 British American Tobacco (Nigeria) Ltd: Key Facts
Company Background
Production by Factory
Competitive Positioning
Summary 3 British American Tobacco (Nigeria) Ltd: Competitive Position 2007