The Manufacturers Association of Nigeria, MAN, says multiple taxes on manufacturers remain a major challenge 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.
According to the report, manufacturers continued to encounter different tax collectors and regulatory agencies during the period under review. MAN Director-General, Segun Ajayi-Kadir, said the new legislation had not yet delivered the expected relief to businesses.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026,” Ajayi-Kadir said.
He noted that the continued situation suggested that the Nigeria Tax Act 2025 had yet to achieve its objective of reducing the burden of taxes and levies on manufacturers.
The MCCI report 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 partly to persistent foreign exchange constraints. With access to foreign currency remaining difficult, many manufacturers have increasingly turned to locally sourced inputs to keep their operations running. However, the association warned that insecurity in parts of the country could reverse the gains recorded in local sourcing. It also identified excessive regulation and multiple taxes on manufacturers as continuing obstacles to sustainable industrial growth.
The report showed that manufacturers recorded a modest improvement in sales volumes during the second quarter. However, increased production, distribution and logistics expenses continued to put pressure on profit margins. Other key indicators, including capacity utilisation, production levels, investment and employment, remained largely unchanged. MAN said the limited improvement showed that manufacturers were still operating under significant economic pressure.
Although recent foreign exchange reforms have contributed to greater stability in the value of the naira, MAN said inadequate access to foreign currency remained a major problem. Manufacturers continue to require foreign exchange to import machinery, raw materials and other production inputs that cannot be sourced locally.
The association said the limited supply of foreign currency therefore continued to constrain manufacturing operations. Other challenges highlighted in the report include poor infrastructure, high production costs, shortages of raw materials and unfavourable trade policies.
The association said the latest findings demonstrated that fiscal and foreign exchange reforms had yet to fully translate into improved operating conditions for manufacturers. It stressed that reducing multiple taxes on manufacturers would require effective implementation of the Nigeria Tax Act and better coordination among government agencies.
MAN also called for measures addressing infrastructure gaps, insecurity, foreign exchange access and rising operating costs. According to the association, creating a more predictable business environment remains essential if Nigeria is to strengthen its manufacturing sector and attract greater investment into the real economy.
