Barring any last minute reversal, locally manufactured tobacco
and alcoholic beverages ("Excisable Products") will be
subject to a new excise regime from 4 June 2018. This new regime is
pursuant to Section 13 of the Customs, Excise Tariff Etc.
(Consolidation) Act which enables the Nigerian President to impose,
vary or remove any import or excise duty.
The Federal Government of Nigeria (FGN) charges an indirect tax
(Excise) on Excisable products which are goods considered harmful
to the environment and public health/morals.
Under the new regime, Excise on alcoholic beverages will be
charged on an ad-quantum basis (volume of production in centilitres
multiplied by the applicable rates) as opposed to ad—valorem
(based on ex- factory price of alcohol produced). For tobacco
products, Excise will also be charged on an ad-quantum basis
(number of sticks produced multiplied by the applicable rates), in
addition to the existing ad-valorem Excise (based on ex-factory
price
