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: 44 | Publication date: Apr 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
Another year of growth
The Nigerian tobacco market experienced another year of retail volume growth in 2006, and quite high growth over the entire review period. This growth can be attributed to the growing influence of Western culture, which saw smoking become popular among younger consumers, and the marketing activities of the tobacco companies. Growth was also aided by weak and rarely implemented tobacco control legislation and the absence of a national regulatory body. Favourable government policies on tobacco also contributed to growth.
Cigarettes dominates Nigerian tobacco market
Cigarettes are the most popular tobacco product in Nigeria accounting for the lion’s share of the market. Cigars are a more expensive option and are smoked by expatriates and upper-income consumers in Nigeria. Smoking tobacco is not popular, though people in rural areas smoke tobacco leaves in pipes.
British American Tobacco Nigeria dominates tobacco
British American Tobacco Nigeria (BAT) merged with the Nigerian Tobacco Company (NTC) in November 2000 to form the single largest tobacco company in Nigeria; it held a massive share of retail volume sales of cigarettes in 2005. The rest of the market is currently fragmented. Its dominance can be largely attributed to the popularity of its brands, which enjoy a long history in Nigeria, and its new factory, which has ensured a steady supply of its products to the market. Also, the company has embarked upon vigorous and creative marketing campaigns that have strengthened brand awareness and improved sales.
Government policies encourage tobacco companies
The government has welcomed tobacco investment and shown active support for tobacco multinationals. BAT was granted a concessionary import duty that lasted until the end of 2003. Upon completion of the ultra-modern cigarette plant built by BAT in 2003, President Olusegun Obasanjo described the US$150 million investment in Nigeria as a significant and trail-blazing initiative, which other investors should emulate. In 2005, the Gallaher Group Plc and Japan Tobacco International (JTI) were registered to operate in Nigeria. The government has failed to create a national committee for tobacco control and there is currently no body that regulates the tobacco industry.
Positive outlook for tobacco
Positive volume and value growth will be driven by the marketing and promotional activities of players in view of the planned entry of new tobacco companies and an improved economic situation in the country, which should lead to an increase in disposable incomes and consumer spending.
State governments to begin litigation against tobacco companies, federal government joins in
Although Nigeria has rarely witnessed litigation against tobacco companies, the atmosphere in the country has begun to change, and in 2007 a few state governments began lawsuits against the tobacco companies, led by BAT, alleging that the companies encouraged youth to smoke. The developments of these lawsuits over the forecast period will most likely have an impact on the future direction of anti-tobacco legislation in Nigeria.
More recently, in November 2007, the Federal Government also sued tobacco firms for damages for public health costs for treating smoking related diseases, in a suit likely to be heard in 2008.
Table of contents
TOBACCO IN NIGERIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Another year of growth
Cigarettes dominates Nigerian tobacco market
British American Tobacco Nigeria dominates tobacco
Government policies encourage tobacco companies
Positive outlook for tobacco
State governments to begin litigation against tobacco companies, federal government joins in
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking prevalence in population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Legislation
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2001-2006
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2001-2006
Table 8 Sales of Tobacco by Sector: Value 2001-2006
Table 9 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 10 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 12 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 13 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 16 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 17 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 25 Sales of Cigarettes by Length 2001-2006
Table 26 Sales of Cigarettes by Pack Size 2001-2006
Table 27 Sales of Cigarettes by Pack Type 2001-2006
Table 28 Cigarettes Company Shares 2002-2006
Table 29 Cigarettes Brand Shares 2003-2006
Table 30 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 31 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 32 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 34 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 35 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 36 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 38 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 39 Forecast Sales of Cigarettes by Length 2006-2011
Table 40 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 41 Forecast Sales of Cigarettes by Pack Type 2006-2011
BRITISH AMERICAN TOBACCO (NIGERIA) LTD
Strategic Direction
Key Facts
Summary 2 British American Tobacco (Nigeria) Ltd: Key Facts
Company Background
Competitive Positioning
Summary 3 British American Tobacco (Nigeria) Ltd: Competitive Position 2006