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.

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Executive summary

Cigarettes growth slows as number of anti tobacco actions increase

The increasing number of lawsuits against tobacco companies, stricter anti smoking legislation, and the implementation of public smoking bans have had a negative impact on cigarette volume sales in recent years. Indeed, in 2008 cigarette volume growth in Nigeria reached its lowest level over the last five years. Growth would have been even slower were it not for the reduction in illicit trade. In response to the negative publicity generated by lawsuits, British American Tobacco company Nigeria (BATN) and other tobacco companies have launched a number of aggressive press campaigns in a bid to salvage their reputations.

Public smoking ban in Federal Capital Territory

In May 2008, the Federal Capital Territory (Abuja) passed the most comprehensive public smoking ban yet seen in the country, outlawing smoking in all communal areas including restaurants, bars, airports, and open spaces. In addition, the Abuja legislation defines a public place as also including outdoor areas where many people congregate, such as streets. The House of Representatives also passed a bill in 2008 which increases the sanctions for smoking in public places.

BAT continues to dominate sales despite increasing competition

Having made good progress in eliminating illegally imported cigarettes, BAT Nigeria is expected to continue to build on its dominant position in Nigeria via aggressive promotion of its brands. However, competition from foreign brands in the country continues to increase. For example, in 2005, Phillip Morris Nigeria re-launched its Marlboro brand in Nigeria, 10 years after its official withdrawal. In addition, demand for foreign brands like Dorchester from Gallaher Group Plc is also expected to increase over the forecast period.

Anti-Tobacco legislation set to negatively impact sales during forecast period

For many years, Nigeria’s anti-tobacco legislation has been relatively weak. However, the government is now looking to toughen its stance. In 2009, a new anti-tobacco bill reached its second reading stage in the Nigerian senate and it is generally believed that the bill will be passed in the near future. The proposed bill would repeal the existing Anti-Tobacco Act, from 1990, which anti-tobacco advocates had considered to be too weak, and would replace it with proposals that would bring Nigeria closer to FCTC requirements. The proposed National Tobacco Control Bill 2009 would ban sales of single cigarette sticks; prohibit all advertising, sponsorship, and promotion of tobacco products; and oblige manufacturers to include pictorial warnings with their cigarette packs. In addition, the bill would also prohibit smoking in public places, including restaurants and bars.

Cigarette volumes expected to decline despite reduction in illicit trade

The increasing number of litigation cases against tobacco companies, rising taxation on tobacco products, and stricter anti-smoking legislation will all have a negative impact on demand for cigarettes over the forecast period. As a result, cigarettes volume sales are expected to decline from 2012 onwards. Indeed, the decline in sales would come even quicker were it not for the reduction in the illicit trade in tobacco products as a result of the efforts of the government and BATN.

Table of contents

TOBACCO IN NIGERIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Cigarettes growth slows as number of anti tobacco actions increase

Public smoking ban in Federal Capital Territory

BAT continues to dominate sales despite increasing competition

Anti-Tobacco legislation set to negatively impact sales during forecast period

Cigarette volumes expected to decline despite reduction in illicit trade

OPERATING ENVIRONMENT

Smoking Prevalence

Table 1 Smoking Prevalence in Population 2003-2008

Table 2 Number of Smokers by Gender 2003-2008

Death by Cause

The Role and Effect of Cannabis/Marijuana

LEGISLATION

Legislative overview/ FCTC ratification

Legislation: Nigerian Law

Health warnings

Duty paid packet marks

Advertising & Sponsorship

Smoking in public places

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

MARKET INDICATORS

Table 6 Illicit Trade Estimate 2003-2008

MARKET DATA

Table 7 Sales of Tobacco by Sector: Volume 2003-2008

Table 8 Sales of Tobacco by Sector: Value 2003-2008

Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008

Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008

Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013

Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013

Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013

Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

CIGARETTES

Headlines

Trends

DISTRIBUTION

Competitive Landscape

New Product Developments

Prospects

SECTOR BACKGROUND

Cigarettes: Price Bands

Summary 2 Cigarette Price Band Definitions

Cigarettes: Menthol/standard

Cigarettes: Filter/non-filter

Cigarettes: Carbon/standard filter

Cigarettes: Filter length

Cigarettes: Slims/superslims vs. regular

Cigarettes: Pack size

Cigarettes: Pack type

SECTOR DATA

Table 15 Sales of Cigarettes by Tar Level: Volume 2003-2008

Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008

Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008

Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008

Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008

Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008

Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008

Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008

Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008

Table 24 Sales of Cigarettes by Length 2003-2008

Table 25 Sales of Cigarettes by Regular/Slim 2006-2008

Table 26 Sales of Cigarettes by Pack Size 2003-2008

Table 27 Sales of Cigarettes by Pack Type 2003-2008

Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008

Table 29 Cigarettes Company Shares 2004-2008

Table 30 Cigarettes Brand Shares 2005-2008

Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008

Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013

Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013

Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013

Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013

Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013

Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013

Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013

Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013

Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013

Table 41 Forecast Sales of Cigarettes by Length 2008-2013

Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013

Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013

Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013

CIGARS AND CIGARILLOS

SMOKING TOBACCO

SMOKELESS TOBACCO

BRITISH AMERICAN TOBACCO (NIGERIA) LTD

STRATEGIC DIRECTION

KEY FACTS

Summary 3 British American Tobacco (Nigeria) Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 British American Tobacco (Nigeria) Ltd: Competitive Position 2008