Nigeria’s manufacturers are yet to see the expected relief from multiple taxes and levies despite the introduction of the Nigeria Tax Act 2025, according to the Manufacturers Association of Nigeria (MAN).
The association made this known in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, noting that businesses continued to deal with several tax collectors and regulatory agencies during the period.
MAN Director-General, Segun Ajayi-Kadir, said the new tax law was expected to reduce the burden of multiple taxation but had not yet achieved that objective for manufacturers.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026,” he said.
According to the report, Nigeria’s business environment remains challenging for manufacturers, with local sourcing of raw materials emerging as the major area of improvement.
MAN, however, warned that insecurity could threaten the progress recorded in local sourcing, particularly in parts of the country where security challenges continue to affect businesses.
The association attributed the increase in local sourcing partly to persistent foreign exchange difficulties, which have pushed manufacturers to look for more inputs within Nigeria.
Despite this, MAN said multiple taxation and excessive regulation remained major obstacles to the sector.
Manufacturers recorded a modest improvement in sales volume during the second quarter, but higher production, distribution and logistics costs continued to put pressure on profits.
The report also showed that capacity utilisation, production, investment and employment remained largely unchanged during the period.
MAN further noted that while foreign exchange reforms had contributed to some stability in the naira, limited access to foreign currency remained a significant challenge for manufacturers.
Other difficulties highlighted by the association included poor infrastructure, high production costs, shortages of raw materials and unfavourable trade policies.
The group said the findings showed that manufacturers were still under considerable pressure despite recent fiscal and foreign exchange reforms, calling for stronger implementation of policies designed to improve the operating environment for businesses.
Source: Manufacturers Association of Nigeria (MAN).
