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nova scotia's illegal cannabis market remains large despite record nslc sales

justic minister scott armstrong says the province is focused on the health and safety of youth as cannabis sales rise. ryan taplin / the chronicle herald
cannabis sales in nova scotia reached nearly $139 million last year. despite this, premier tim houston says the province remains focused on the unregulated market, prioritizing health and safety worries over concerns of potential lost tax revenue.
in a year-end financial report released tuesday, the nova scotia liquor corp. reported $138.8 million in cannabis sales during the fiscal year ending march 31, an increase of 9.3 per cent from the previous year. 
despite the growth in legal sales, houston and justice minister scott armstrong said public health and public safety concerns continue to drive the province’s approach to cannabis, particularly as health professionals report troubling impacts on youth from high-potency products often available through the unregulated market. 

unregulated market remains a concern 

speaking with reporters following cabinet thursday, houston said the province believes a significant illegal cannabis market continues to operate in nova scotia, but officials do not know how large it is. 
“the illegal market continues to be a major concern for me,” houston said.  
 premier tim houston says concerns regarding lost revenue through unregulated sales is second to concerns for health and safety.
premier tim houston says concerns regarding lost revenue through unregulated sales is second to concerns for health and safety. ryan taplin / the chronicle herald
“i would say the lights flash a little brighter and the concern gets a little higher when there’s a public safety issue, and there’s definitely a public safety issue with the illegal drug market.” 
houston said the government has “some guesses” about the size of the illegal market based on the number of unlicensed stores and enforcement actions but no reliable estimate. 
armstrong said calculating lost revenue is virtually impossible. 
“i have no idea how much revenue is being lost because the black market, the parallel black market, is unregulated,” he said. “it would be impossible to determine just how much volume is being sold illegally in nova scotia.” 
armstrong said one issue with tracking lost revenue is the number of ways unregulated sales are delivered. 
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“it’s not just dispensaries,” he said. “there’s online concerns, there’s people around the corner.” 
armstrong said the focus remains on enforcement and public safety. 
“as minister of justice, it’s my responsibility for public safety, and that’s my concern and involvement in terms of cannabis.” 

enforcement continues in nova scotia

armstrong said authorities continue to seize unregulated cannabis products and conduct enforcement operations across the province. 
he estimated the number of rcmp actions related to unregulated cannabis operations would be in the “double digits,” including investigations involving storefront dispensaries, online sales and cannabis transported in vehicles. 
 an assortment of cannabis products seized by rcmp in nova scotia this year at an illegal retail store.contributed: rcmp
an assortment of cannabis products seized by rcmp in nova scotia this year at an illegal retail store.contributed: rcmp
“i will say we’re very concerned about the amount of volumes that we’re finding in nova scotia,” he said. “we’re concerned about the social and medical impacts we’re seeing.” 
houston and armstrong emphasized that cannabis sold through the nslc is regulated by health canada and is subject to age verification requirements and other safeguards. 

iwk has concerns about youth cannabis use

the province’s focus on health impacts comes as physicians at the iwk health centre have increasing concerns about cannabis use among young people. 
in an email interview, dr. sabina abidi, head of the youth psychosis clinic at the iwk, said nova scotia has the highest rate of cannabis use among youth aged 16 to 19 in canada. a major concern with this is the availability of high-potency cannabis products, such as vape cartridges and dab pens, which can contain thc levels of 90 to 95 per cent. 
thc, or tetrahydrocannabinol, is the psychoactive ingredient in cannabis. 
abidi said exposure to high concentrations of thc during adolescence can interfere with brain development and increase the risk of serious mental illness, including schizophrenia. 
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the risk for development of schizophrenia is more than 50 per cent within two years for youth and young adults who have experienced severe psychotic symptoms secondary to cannabis exposure, even if the psychotic symptoms improve with treatment,” she wrote. 
she added that clinicians at the iwk are seeing more youth with severe psychotic symptoms linked to cannabis use and requiring hospitalization.  
“we are seeing atypical presentations of psychosis, longer hospital stays, resistance to treatment and increased risk for recurrence of psychotic symptoms.” 

easy access to high potency cannabis

abidi said youth continue to report that high-potency cannabis products are easily obtained, despite efforts to curb unregulated sales. 
she wrote that “youth who have been impacted have expressed concern to iwk staff, stating ‘it should not be so easy for us to get our hands on these (illegal products).’” 
she said lower-potency cannabis products, containing less than 20 per cent thc, are not readily available or promoted, while information around high-potency products remains limited. 
public education campaigns on the risk of high-potency cannabis to the developing adolescent brain are essential so nova scotians can make informed choices about use,” she wrote. 
armstrong said concerns raised by iwk doctors reinforce the province’s continued action against unregulated cannabis sales. 
“as recently as yesterday i met with doctors from the iwk, talking about impacts seen with youth, particularly ones that ingest a really high level of cannabis,” he said. “we’re talking kids in middle school and junior high and high school, and the negative effects are seen in terms of psychosis.” 
while cannabis sales in the province climb through the nslc, provincial officials say the availability of unregulated products, especially high-potency cannabis, remains the biggest concern.
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“it’s shocking the negative effects you can see, and we now have kids as young as 11 who are turning up in emergency rooms,” armstrong said. “this is why it’s a priority of the province.”
ally bowes
ally bowes

i started as a multimedia journalist with the chronicle herald in the fall of 2025, following graduating from the university of king college’s one-year bachelor's of journalism program.

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