MAN: Manufacturers Still Struggling With Multiple Taxes Despite 2025 Tax Reform

Nigeria’s manufacturers are still battling multiple taxes, levies and regulatory charges despite the introduction of the Nigeria Tax Act 2025, the Manufacturers Association of Nigeria (MAN) has said.

The association raised the concern in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, saying businesses continued to encounter multiple tax collectors and regulatory agencies during the period.

MAN Director-General, Segun Ajayi-Kadir, said the tax reform had yet to deliver the expected relief for manufacturers. He said the continued presence of multiple collectors showed that the new law had not fully achieved its objective of reducing the tax burden on businesses.

The report also painted a difficult picture of Nigeria’s manufacturing environment, with local sourcing of raw materials emerging as the only area that recorded noticeable improvement. MAN attributed the increase partly to persistent foreign exchange challenges, which have pushed more manufacturers towards domestic suppliers.

However, the association warned that insecurity could threaten the gains made in local sourcing. It also identified excessive regulation and multiple taxation as major obstacles still weighing on manufacturers across the country.

Manufacturers recorded a modest improvement in sales volumes during the second quarter, but higher production, distribution and logistics costs continued to squeeze profit margins. Capacity utilisation, production, investment and employment levels, meanwhile, remained largely unchanged.

MAN said foreign exchange reforms had contributed to greater stability in the naira, but manufacturers were still struggling with inadequate access to foreign currency. Other major challenges highlighted in the report included poor infrastructure, high production costs, shortages of raw materials and unfavourable trade policies.

The association said the findings showed that manufacturers had yet to feel the full benefits of recent fiscal and foreign exchange reforms. It called for stronger implementation of government policies designed to reduce business costs and create a more supportive environment for Nigeria’s manufacturing sector.