The Manufacturers Association of Nigeria, MAN, says manufacturers are still struggling with multiple taxes and levies despite the introduction of the Nigeria Tax Act 2025. The association said the multiple taxation burden remained evident during the second quarter of 2026, with manufacturers continuing to encounter different tax collectors and regulatory agencies. The disclosure was contained in MAN’s Manufacturers CEO Confidence Index, MCCI, report for Q2 2026.
MAN Director-General, Segun Ajayi-Kadir, said the new tax framework had not yet produced the expected relief for manufacturers. According to him, manufacturers continued to complain about interactions with multiple tax authorities and regulators during the review period.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026,” he said.
Ajayi-Kadir noted that the continued complaints suggested that implementation of the Nigeria Tax Act 2025 had yet to achieve its objective of reducing the burden of taxes and levies on businesses. The report also described Nigeria’s business environment as largely unsupportive of manufacturing expansion. Local sourcing of raw materials was identified as the only major indicator that recorded noticeable improvement during the quarter.
MAN attributed the improvement in local sourcing partly to persistent foreign exchange constraints. With access to foreign currency remaining difficult, manufacturers have increasingly turned to domestic suppliers for production inputs.
However, the association warned that insecurity could reverse the progress, particularly in areas where manufacturers depend on local agricultural and raw material supplies. It also identified excessive regulation and the continued multiple taxation burden as major pressures on businesses.
Manufacturers recorded a modest improvement in sales volumes during the second quarter. However, the increase did not translate into stronger profitability as production, distribution and logistics expenses continued to rise. MAN said capacity utilisation, production levels, investment and employment remained largely unchanged during the period.
The findings suggest that manufacturers are still operating under significant cost pressures despite recent fiscal and foreign exchange reforms. The association further noted that foreign exchange reforms had contributed to some stability in the naira. Nevertheless, inadequate availability of foreign currency remained a major obstacle to manufacturing operations.
Beyond taxation and foreign exchange challenges, MAN identified poor infrastructure, high production expenses, shortages of raw materials and unfavourable trade policies among the major obstacles confronting manufacturers. The association said the Q2 findings showed that recent reforms had not yet sufficiently improved conditions for businesses in the real sector.
It called for stronger implementation of government policies designed to reduce operating costs and create a more supportive environment for manufacturers. MAN stressed that addressing the multiple taxation burden, alongside infrastructure, foreign exchange and regulatory challenges, would be crucial to improving the competitiveness and sustainability of Nigeria’s manufacturing sector.
