‘Multiple taxation raising production costs’

The Manufacturers Association of Nigeria, Ogun State Branch, has appealed to the state government to streamline its multiple taxation and regulatory charges. The association warns that the current business environment is escalating production costs and deterring investment.

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The association also called on the government to revive its quarterly engagement forum with manufacturers to strengthen collaboration and address operational challenges affecting industries.

George Onafowokan, the outgoing Chairman of MAN in Ogun State, made this appeal during the association’s 41st Annual General Meeting. He noted that manufacturers face significant hurdles, including volatile exchange rates, high inflation, escalating energy expenses, and costly borrowing rates. Onafowokan acknowledged recent economic reforms that boosted government revenue but stressed they also raised the cost of doing business.

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manufacturers were grappling with exchange rate volatility, inflation, rising energy costs, lending rates, multiple taxation and an increasingly burdensome regulatory environment.

Energy costs were identified as a major impediment to industrial competitiveness. Rising electricity tariffs and unreliable power supply compel manufacturers to rely on self-generated electricity, substantially increasing operational expenses. Limited access to foreign exchange for importing essential raw materials and machinery also poses a significant challenge.

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energy as one of the biggest obstacles to industrial competitiveness, saying rising electricity tariffs and unreliable public power supply had forced manufacturers to depend heavily on self-generated electricity, significantly increasing production costs.

While commending the state government for infrastructure and security investments, Onafowokan pointed out that industries remain burdened by numerous regulatory demands, increased logistics costs, and infrastructure gaps. He urged the government to consult with MAN and other private sector groups before implementing new business-related policies and to revive quarterly interactive forums for better collaboration and problem-solving.

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industries in Ogun State were still burdened by multiple regulatory demands, rising logistics costs and infrastructure deficiencies.