The Manufacturers Association of Nigeria (MAN) has said manufacturers are yet to enjoy significant relief from multiple taxes and levies despite the enactment of the Nigeria Tax Act 2025.
The association disclosed this in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, noting that manufacturers continued to contend with multiple tax collectors and regulatory agencies during the period.
The Director-General of MAN, Segun Ajayi-Kadir, said the new tax law, which was expected to reduce the burden of multiple taxation, had yet to deliver the anticipated benefits.
“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,” he said.
According to the report, Nigeria’s business environment remained largely unsupportive of manufacturing growth, with local sourcing of raw materials emerging as the only indicator that recorded noticeable improvement.
MAN, however, warned that the gains in local sourcing could be threatened by worsening insecurity in some parts of the country.
The association attributed the increase in local sourcing largely to persistent foreign exchange constraints, which have compelled manufacturers to seek alternative sources of inputs within the country.
Despite the improvement, MAN said excessive regulation and multiple taxation continued to place significant pressure on manufacturers.
The report showed that manufacturers recorded a modest increase in sales volume during the second quarter, but rising production, distribution and logistics costs continued to erode profit margins.
It added that capacity utilisation, production levels, investment and employment remained largely unchanged during the period under review.
MAN further noted that while recent foreign exchange reforms had contributed to some stability in the naira, inadequate access to foreign currency remained a major constraint to manufacturing operations.
Other challenges identified in the report included poor infrastructure, high production costs, shortages of raw materials and unfavourable trade policies.
The association said the findings highlighted the continued pressure on manufacturers despite recent fiscal and foreign exchange reforms.
It called for more effective implementation of government policies aimed at creating a more supportive operating environment for the real sector.
