Nigerian manufacturers still burdened by multiple taxes despite new law

Manufacturers in Nigeria are still burdened by multiple taxes and levies, with the Nigeria Tax Act 2025 failing to deliver expected relief. The Manufacturers Association of Nigeria (MAN) highlighted this in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026. The association noted that companies continue to deal with numerous tax collectors and regulatory agencies.

Segun Ajayi-Kadir, Director-General of MAN, stated that the new tax law, intended to ease the pressure of multiple taxation, has not yet achieved its goals. "Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026," he said, adding that the implementation of the Nigeria Tax Act 2025 has not yet relieved manufacturers of their tax burdens.

The report indicates that Nigeria's business environment remains challenging for manufacturing. Local sourcing of raw materials showed improvement, largely driven by foreign exchange constraints forcing companies to seek domestic inputs. However, MAN warned that worsening insecurity could undermine these gains. Excessive regulation and multiple taxation continue to significantly impact manufacturers.

Sales volume saw a modest increase in the second quarter, but rising production, distribution, and logistics costs eroded profitability. Capacity utilization, production levels, investment, and employment remained largely stagnant. Despite recent foreign exchange reforms stabilizing the naira, inadequate currency supply remains a key constraint. Poor infrastructure, high production costs, and raw material shortages also pose significant challenges.

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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.