Nigeria Tax Act Yet to Ease Manufacturers’ Burden, Says MAN
The Manufacturers Association of Nigeria (MAN) has said the Nigeria Tax Act 2025 has yet to provide the expected relief from multiple taxes and levies for manufacturers.
MAN disclosed this in its latest CEO confidence index result, noting that manufacturers continued to encounter multiple tax collectors and regulators in the second quarter of 2026 despite the enactment of the law.
The association said the Act was partly intended to curb multiple taxation and levies, but its implementation had not achieved that objective.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026,” Segun Ajayi-Kadir, director-general of MAN, said. “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.”
According to the association, Nigeria’s operating environment remains largely unsupportive of manufacturing productivity. Local sourcing of raw materials was the only area manufacturers assessed positively, although worsening insecurity in parts of the country raised concerns about the sustainability of the improvement.
MAN reported a slight increase in sales volume between April and June 2026. However, manufacturers faced rising production, distribution and shipping costs during the period.
Capacity utilisation, production volume, investment and employment levels remained largely unchanged, the report added.
The association also said that while foreign exchange market reforms had helped stabilise the naira, an inadequate supply of foreign currency continued to constrain manufacturing operations.
Other challenges recorded in the second quarter included inadequate public infrastructure, high production costs, shortages of raw materials and unfavourable trade policies.
MAN’s findings suggest that manufacturers continue to face substantial operating pressures despite recent fiscal and foreign exchange reforms by the Federal Government.
