Nigerian Manufacturers Still Grapple With Multiple Taxes Despite Reforms—MAN

By Adedapo Adesanya

Manufacturers are yet to benefit from relief on the burden of multiple taxes and levies despite the enactment of the Nigeria Tax Act 2025, according to the Manufacturers Association of Nigeria (MAN).

The association, in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, said manufacturers continued to face multiple tax collectors and regulatory agencies during the period.

Director-General of MAN, Mr Segun Ajayi-Kadir, said the new tax law, which was expected to reduce the burden of multiple taxation, had yet to deliver the intended benefits.

“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026. It follows that the implementation of the Nigeria Tax Act 2025 is yet to achieve its objective of relieving manufacturers of the burden of taxes and levies,” he said.

According to the report, Nigeria’s business environment remains largely unsupportive of manufacturing growth, with local sourcing of raw materials emerging as the only indicator that recorded noticeable improvement.

MAN, however, warned that the gains in local sourcing could be undermined by worsening insecurity in parts of the country.

The association attributed the improvement largely to persistent foreign exchange constraints, which have forced many manufacturers to source inputs locally.

Despite this, it said excessive regulation and multiple taxation continue to weigh heavily on manufacturers.

The report showed that manufacturers recorded a modest increase in sales volume during the second quarter, but rising production, distribution and logistics costs continued to erode profitability.

It added that capacity utilisation, production levels, investment and employment remained broadly unchanged during the review period.

MAN further observed that although recent foreign exchange reforms had helped stabilise the naira, inadequate foreign currency supply remained a major constraint to manufacturing operations.

Other key challenges identified in the report include poor infrastructure, high production costs, raw material shortages and unfavourable trade policies.

The association said the findings underscore the continued pressure on manufacturers despite recent fiscal and foreign exchange reforms, stressing the need for more effective implementation of policies aimed at improving the operating environment for the real sector.