General News
Case Against Tobacco Ban by Analysts, Others
Policy analysts and industry groups have strongly canvassed against the outright banning of tobacco production in Nigeria.
Banning the legitimate production and distribution of tobacco products, the groups argue, will spark off a series of developments, including smuggling and criminal money laundering, whose consequences will portend far worse problems for Nigeria, they warned.
This counsel is coming in the wake of deliberations held on the proposed tobacco bill in the Senate on September 24, 2014.
The proposed bill seeks to regulate the production and consumption of tobacco products in Nigeria.
While Senator Victor Ndoma-Egba, Majority Leader of the Senate and other Senators canvassed balanced regulation of the tobacco industry, some members of the Upper Legislative Chamber canvassed for an outright ban of tobacco production in Nigeria.
“What we are saying is that the legislation should be such that is enforceable and its outcomes, realistic and predictable,” said Olusegun Sotola, head of Research and Advocacy at the Initiative for Public Policy Analysis (IPPA), an independent policy research organisation based in Lagos.
“Banning the production and consumption of cigarettes will affect legitimate producers in Nigeria and lead to a closure of factories and losses of thousands of jobs with serious economic backlash on many families.”
He continued: “This approach will defeat the goals of the stakeholders which is to seek a balanced regulation of the industry. Banning legitimate tobacco production will compound and render ineffective the bill when it becomes operational.
“Lawmakers should be mindful of the fact that industry players who have roles to play in addressing the concerns over tobacco consumption will no longer have a stake.
At the same time, the industry’s quest for safer alternatives to regular cigarettes will wane.
The key objective for lawmakers is to seek regulations that will protect non-smokers from the effect of cigarette consumption.
Incidentally he added, banning the production of cigarettes in Nigeria is not likely to curb the demand for cigarettes as those who smoke will continue to smoke. “Demand for cigarettes,” he said, “ given our porous borders will simply be met by smuggling of cigarettes into Nigeria, which could worsen the security challenges in the country.
Using examples from other countries that had in the past attempted to impose draconian regulations on tobacco production, Sotola explained that the rate of cigarette smuggling went up drastically in such countries as a consequence. “An outright ban will leave Nigeria’s borders wide open for smugglers to fill the vacuum because no legislation can stop or eliminate smokers’ demand for cigarettes,” he counselled.
“An important point the legislators should ponder is why any government hasn’t banned the sale of cigarettes,” posited Tony Ogbulafor of the Campaign for Social Justice, CSJ, a civil society group. “Demand for cigarettes cannot be legislated upon.
” Since laws cannot create demand, it is incumbent on the legislators to draft laws that will along with industry players help smokers to quit and promote the wellbeing of Nigerians as well as the society, rather than one that, while seeking to promote public health on one hand, undermines the very essence of what they seek to achieve.”
He added: “As long as smoking cannot be legislated out of existence, legislators should strive to protect smokers and non-smokers, the economy as well as the security of the country from the more damaging effects of cigarette smuggling.”
Similarly, the Manufacturers Association of Nigeria (MAN) had stated at the Public Hearing on the National Tobacco Control Bill, organised by the Committee on Health of the House of Representatives in July, that the legislators should be wary of any legislation that they seek to enact, so that such legislation does not lead to harm than the good it seeks to bring about.
MAN had argued at the hearing that it would be counter-productive to strangulate legitimate producers who have invested and contributed to the country’s achieving inclusive growth and then leave smokers to resort to smuggled cigarettes which are produced in other countries.
Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government and the National Pension Commission (PenCom) to suspend the proposed increase in Nigeria’s mandatory pension contribution from 18 per cent to 21 per cent, warning that the policy would raise the cost of doing business, threaten jobs and undermine enterprise sustainability at a time of mounting economic pressures.
Dr. Chinyere Almona, director general of the LCCI, said while strengthening retirement security remains an important policy objective, increasing mandatory pension contributions by three percentage points would impose additional financial burdens on businesses already grappling with high borrowing costs, persistent inflation, foreign exchange volatility, rising energy prices and multiple taxes.
According to the chamber, the proposed increase comes at a period when many businesses, particularly micro, small and medium-sized enterprises (MSMEs), are struggling to remain profitable amid Nigeria’s challenging operating environment.
The LCCI noted that Nigeria’s existing mandatory pension contribution rate of 18 per cent comprising 10 per cent by employers and 8 per cent by employees is already broadly aligned with the Organisation for Economic Co-operation and Development (OECD) average of 18.8 per cent.
It argued that raising the contribution to approximately 21 per cent would place Nigeria above several comparable economies, including the United Kingdom, where mandatory contributions stand at 8 per cent; the United States at 12.4 per cent; Kenya at 12 per cent, subject to earnings caps; and South Africa, where there is no equivalent mandatory private-sector pension contribution.
The chamber warned that implementing the proposed increase would significantly raise employment costs for employers, discourage new recruitment, constrain wage growth and place disproportionate pressure on MSMEs, which account for a substantial share of employment in Nigeria.
According to the LCCI, the higher payroll obligations could also reduce Nigeria’s competitiveness as an investment destination, encourage non-compliance with pension regulations and push more businesses into the informal sector.
“A stronger pension system cannot be built on weaker businesses,” the chamber stated, stressing that economic sustainability and business growth remain critical to expanding pension coverage over the long term.
The LCCI therefore called on the Federal Government to defer the proposal until a comprehensive Nigeria-specific actuarial and economic impact assessment is conducted to determine its implications for businesses, workers and the broader economy.
It also urged policymakers to engage in extensive consultations with organised private sector groups, labour unions and other key stakeholders before implementing any changes to the country’s pension contribution framework.
According to the chamber, the government’s immediate priority should be restoring business confidence, preserving existing jobs, encouraging investment and expanding the formal economy, which it described as the most sustainable pathway to improving retirement savings.
As an alternative to increasing contribution rates, the LCCI advised PenCom to focus on developing more innovative investment instruments capable of generating stronger returns on pension assets.
The chamber said improving investment performance would enhance contributors’ retirement savings without imposing additional financial obligations on employers and employees already facing difficult economic conditions.
Nigeria and the African Development Bank (AfDB), on Sunday, called for stronger African ownership of the continent’s vast mineral resources and advocated greater data sovereignty, regional collaboration and strategic financing to ensure Africa derives more economic value from its natural assets.
They spoke at the Ministerial Forum on Critical Minerals, Value Chain and Beneficiation: Pathways for African Transformation, organised by the African Development Bank in Abidjan, Côte d’Ivoire.
Speaking at the forum, the Minister of Solid Minerals Development, Dr. Dele Alake, urged countries to embrace data sovereignty, regional collaboration and strategic financing to ensure mineral wealth translates into sustainable economic growth across Africa.
Alake urged ministers from Africa’s mineral-producing nations to pursue greater regional cooperation rather than isolated national strategies, arguing that coordinated action would enable the continent to derive greater value from its abundant mineral resources.
Alake said Africa must move beyond exporting raw minerals and adopt practical measures to secure full control of its natural assets through value addition and local processing.
He said: “While the mantra of value addition has ushered in an era of economic independence for mineral-producing nations, we need concrete actionable strategies to take charge and be in full control of our natural assets to ensure total economic freedom.”
The minister, who chairs the Africa Mineral Strategy Group (AMSG), said Nigeria had continued to champion a common continental agenda on mineral development through collaboration with more than 30 member countries focused on promoting value addition.
He also advocated greater African control over mineral resource data, describing the continent’s long-standing dependence on the Australia-based Joint Ore Reserves Committee (JORC) reporting standard as outdated.
Alake added, “For the overall interest of the continent, and to efficiently and effectively safeguard its resources, Africa should take charge of the coding mechanisms utilised to assess its mineral assets.”
He urged African countries to adopt the Pan African Resource Reporting Code (PARC), developed by the Africa Minerals Development Centre (AMDC), saying the framework would promote transparency, consistency and ethical reporting while reflecting Africa’s unique geological and environmental realities.
Alake further proposed the establishment of a West African minerals processing hub and corridor stretching from Lagos to Dakar, modelled after the Lobito Corridor, to reduce infrastructure costs, encourage collaborative investment and enable participating countries to specialise in processing specific minerals.
According to him, the regional model would lower financial burdens on individual countries while promoting shared risks, increased trade and stronger value chains.
He also lamented the low level of intra-African trade, which he said stands at about 16 per cent, compared to roughly 60 per cent in Asia and 70 per cent in Europe.
In his remarks, AfDB President Dr. Sidi Ould Tah, described Africa’s mineral sector as a paradox, noting that despite the continent’s vast mineral endowment, it has yet to achieve corresponding gains in Gross Domestic Product (GDP) or attract sufficient Foreign Direct Investment (FDI).
Tah said Africa must overcome the disconnect between its enormous natural wealth and its limited global economic influence by strengthening financing mechanisms and developing integrated mineral value chains.
The forum concluded with the adoption of the Abidjan Declaration, which commits African countries to coordinate policies on critical minerals, regional infrastructure development, value-chain expansion and capital mobilisation.
Under the declaration, the African Development Bank pledged to deploy its financing instruments, technical expertise and capital mobilisation capacity to support mineral-producing countries, reduce investment risks, finance strategic infrastructure and accelerate the development of competitive and sustainable mineral value chains.
A statement by the Special Assistant on Media to the Minister of Solid Minerals Development, Lara Owoeye-Wise, said the declaration also urged African countries to strengthen national and regional capacities capable of attracting investment, financing viable projects and creating quality jobs through local value addition.
The forum brought together more than 20 ministers responsible for mining, energy, industry, natural resources and the green economy, alongside representatives of the African Development Bank, the African Export-Import Bank (Afreximbank), the U.S. Export-Import Bank and mining companies from Germany, Canada and the United States.
Participants reaffirmed that stronger African cooperation, regional processing infrastructure, strategic financing and greater control over mineral resources remain essential to transforming the continent’s mineral wealth into broad-based and sustainable economic development.
Prof. Chukwuma Soludo, governor, Anambra State, has approved an indefinite ban on graduation ceremonies in kindergarten, primary and secondary schools across the state as part of efforts to reduce the financial burden on parents.
Prof. Chukwuma Soludo, governor, Anambra State,
The directive was confirmed by Dr. Law Mefor, commissioner for Information and Value Reformation, in a statement issued on Friday.
According to the commissioner, the government deemed it necessary to clarify the policy following public inquiries and concerns over the scope of the ban.
Mefor explained that the directive applies to all graduation-related ceremonies in both public and private schools across the state.
He said the ban covers events described as graduation, passing-out, crossover or any other ceremony organised to mark the completion of kindergarten, primary or secondary school levels.
The government said the decision was taken to discourage unnecessary financial obligations often imposed on parents through elaborate school celebrations.
The commissioner clarified that students completing Senior Secondary School (SS3) are exempt from the directive.
However, he stressed that graduation ceremonies for SS3 students are not compulsory and may only be held without imposing any financial burden on students or their parents.
According to him, schools choosing to organise such ceremonies must ensure that no levies, compulsory contributions or hidden charges are demanded from parents.
Mefor warned that the state government would not hesitate to sanction any school that violates the directive.
He said schools found organising prohibited graduation ceremonies or imposing illegal charges on parents risk severe penalties, including possible closure.
The commissioner urged school proprietors and administrators to comply fully with the directive in the interest of parents and the education sector.
The state government said the policy is part of broader efforts to make education more affordable and eliminate unnecessary expenses associated with school activities.
Many parents have previously complained about the increasing costs of graduation ceremonies, including compulsory levies for gowns, entertainment, souvenirs and other related expenses.
The government expressed optimism that the directive would ease the financial pressure on families while encouraging schools to focus more on academic excellence than ceremonial activities.
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