MAN tax reform appeal highlights pressure on Nigerian manufacturers from multiple taxes, poor infrastructure, and rising production costs

The Manufacturers Association of Nigeria (MAN) and industry stakeholders in Lagos on Monday, April 13, 2026, renewed calls for comprehensive tax reform, urging government authorities to harmonise and simplify Nigeria’s fragmented tax system amid rising pressure on industrial operators.

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The appeal, captured in the MAN tax reform appeal, was made by the Chairman of the MAN Apapa Branch, Frank Onyebu, who warned that manufacturers are facing unsustainable operating conditions driven by multiple taxation, weak infrastructure and inconsistent regulatory practices across federal, state and local government agencies.

Onyebu stated that manufacturers are frequently subjected to overlapping tax demands, with officials from different tiers of government often converging on production facilities simultaneously to enforce separate levies.

He described the situation as disruptive, noting that in some cases factory operations are forced to halt during enforcement visits.

MAN tax reform appeal highlights growing frustration within Nigeria’s manufacturing sector, which stakeholders say is being stretched by rising production costs, unstable policy direction, limited access to foreign exchange and deteriorating infrastructure.

According to Onyebu, the presence of multiple tax agencies and even overlapping units within single government institutions has worsened compliance challenges, placing additional financial strain on manufacturers and reducing overall productivity.

He further noted that manufacturers remain easy targets for tax enforcement due to their formal structure, unlike operators in the informal sector who often escape regulatory scrutiny.

This imbalance, he said, undermines fairness in the tax system.

Industrial operators have also raised concerns about poor road networks and inadequate infrastructure in manufacturing corridors, which they say discourages investment and increases logistics costs.

Onyebu warned that continued pressure could push firms towards import dependency, weakening Nigeria’s industrial base.

Onyebu urged government authorities to urgently improve infrastructure, ensure stable electricity supply and establish a unified tax administration framework that reduces duplication and enhances transparency.

He stressed that the manufacturing sector plays a critical role in job creation, import substitution and economic development, and therefore requires policy support rather than excessive fiscal pressure.

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Industry stakeholders maintain that addressing structural inefficiencies in the tax system is essential to improving competitiveness and sustaining local production in Nigeria’s evolving economic environment.