Nigeria: Tobacco Market 2025

Tobacco Market Size in Nigeria

In 2021, the Nigerien tobacco market decreased by -10.8% to $X for the first time since 2018, thus ending a two-year rising trend. Overall, consumption, however, continues to indicate a relatively flat trend pattern. Over the period under review, the market attained the peak level at $X in 2020, and then shrank in the following year.

Tobacco Production in Nigeria

In value terms, tobacco production contracted to $X in 2021 estimated in export price. Overall, production, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 with an increase of 84%. Over the period under review, production reached the peak level at $X in 2020, and then fell in the following year.

Tobacco Exports

Exports from Nigeria

In 2021, the amount of tobacco (smoking tobacco, chewing tobacco, snuff) exported from Nigeria skyrocketed to X tons, growing by 98% against the previous year's figure. In general, exports showed a significant increase. The most prominent rate of growth was recorded in 2017 with an increase of 639%. The exports peaked in 2021 and are expected to retain growth in the immediate term.

In value terms, tobacco exports skyrocketed to $X in 2021. Overall, exports showed a significant increase. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

Exports by Country

Mali (X tons) was the main destination for tobacco exports from Nigeria, accounting for a 68% share of total exports. Moreover, tobacco exports to Mali exceeded the volume sent to the second major destination, the United Arab Emirates (X tons), twofold. South Africa (X kg) ranked third in terms of total exports with a 2.1% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to Mali totaled +97.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (0.0% per year) and South Africa (+10.7% per year).

In value terms, Mali ($X) emerged as the key foreign market for tobacco (smoking tobacco, chewing tobacco, snuff) exports from Nigeria, comprising 74% of total exports. The second position in the ranking was held by the United Arab Emirates ($X), with a 25% share of total exports. It was followed by South Africa, with a 0.7% share.

From 2012 to 2021, the average annual growth rate of value to Mali stood at +135.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (0.0% per year) and South Africa (+24.0% per year).

Export Prices by Country

The average tobacco export price stood at $X per ton in 2021, rising by 129% against the previous year. Over the period under review, the export price saw slight growth. The export price peaked at $X per ton in 2016; however, from 2017 to 2021, the export prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Mali ($X per ton), while the average price for exports to South Africa ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Mali (+19.0%), while the prices for the other major destinations experienced mixed trend patterns.

Tobacco Imports

Imports into Nigeria

In 2021, overseas purchases of tobacco (smoking tobacco, chewing tobacco, snuff) decreased by -75.8% to X tons for the first time since 2015, thus ending a five-year rising trend. Over the period under review, imports, however, showed a significant expansion. The pace of growth appeared the most rapid in 2018 when imports increased by 317% against the previous year. Imports peaked at X tons in 2020, and then reduced remarkably in the following year.

In value terms, tobacco imports fell markedly to $X in 2021. Overall, imports, however, saw a significant increase. The growth pace was the most rapid in 2014 with an increase of 332%. Over the period under review, imports hit record highs at $X in 2020, and then declined notably in the following year.

Imports by Country

Serbia (X tons), Denmark (X tons) and South Korea (X tons) were the main suppliers of tobacco imports to Nigeria, together accounting for 67% of total imports. The United States, Hungary, France, Uganda and the Netherlands lagged somewhat behind, together comprising a further 13%.

From 2012 to 2021, the biggest increases were recorded for the Netherlands (with a CAGR of +295.4%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest tobacco suppliers to Nigeria were Denmark ($X), Serbia ($X) and South Korea ($X), together comprising 47% of total imports. These countries were followed by Hungary, the United States, the Netherlands, Uganda and France, which together accounted for a further 16%.

Among the main suppliers, the Netherlands, with a CAGR of +388.5%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average tobacco import price amounted to $X per ton, declining by -9.6% against the previous year. Overall, the import price, however, showed perceptible growth. The growth pace was the most rapid in 2015 when the average import price increased by 82%. The import price peaked at $X per ton in 2016; however, from 2017 to 2021, import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was the Netherlands ($X per ton), while the price for Serbia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Netherlands (+23.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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