In Nigeria, a majority of the adult smoking population (15 years and above) consume tobacco primarily in the form of cigarettes. Nigeria has about 6 million adult smokers, or 5.6 percent smoking prevalence (GATS, 2017). Smoking prevalence is significantly higher for men (at 10 percent) relative to women (1.1 percent), and 18 percent of Nigerian youths between the ages of 13 to 15 years smoke (GATS, 2017). A total of 920 million cigarette packs were consumed in Nigeria in 2015 (GlobalData Plc., 2016), of which 74 percent is domestically produced (NCS, 2015). Tobacco related diseases are responsible for about 17,500 deaths per year (about 207 men and 130 women per week) and about 250,000 cancer diagnoses (Tobacco Atlas, 2015). Economic losses in the form of medical treatments and loss of productivity from tobacco-related diseases is estimated at US$ 591 million in 2015 (Tobacco Atlas, 2015).Thus, there is an urgent need to implement an effective tobacco control program to curb the epidemic of rising smoking prevalence rates and their impacts. Among several tobacco control measures, tobacco taxation is widely considered as the most effective means of not only reducing tobacco consumption but also raising substantial government revenues (WHO, 2005; 2015). In order to reverse the current trajectory of smoking prevalence or at least slow down the pace of growth, a tobacco tax policy that increases the excise tax (and consequently the retail prices) of cigarettes is essential.