The Manufacturers Association of Nigeria (MAN) says manufacturers are still struggling with multiple taxes and regulatory levies despite the introduction of the Nigeria Tax Act 2025.
In its second-quarter 2026 Manufacturers CEO Confidence Index, MAN said businesses continued to encounter different tax collectors and regulatory agencies, raising concerns about whether the new tax framework is delivering the relief expected by the manufacturing sector.
MAN Director-General, Segun Ajayi-Kadir, said the persistence of multiple taxation was undermining one of the key objectives of the tax reforms.
The association said Nigeria’s manufacturing environment remained challenging, with high operating costs, weak infrastructure, shortages of raw materials and unfavourable trade policies continuing to affect businesses.
Manufacturers recorded a modest improvement in sales volumes during the quarter. However, rising production, distribution and logistics expenses continued to put pressure on profitability.
The report also showed little change in capacity utilisation, production levels, investment and employment during the period.
Local sourcing of raw materials emerged as one of the few areas showing improvement. MAN attributed this partly to foreign exchange constraints, which have pushed manufacturers to rely more heavily on locally available inputs.
However, the association warned that insecurity in some parts of Nigeria could threaten the gains made in local sourcing.
Although recent foreign exchange reforms have contributed to greater stability in the naira, manufacturers said limited access to foreign currency remains a major obstacle to importing essential production inputs.
MAN is therefore calling for stronger implementation of government reforms, arguing that reducing multiple taxes and improving the wider business environment are critical to strengthening Nigeria’s manufacturing sector and attracting sustainable investment.
The concerns come as Nigeria continues efforts to expand its economy, boost local production and create a more competitive environment for businesses operating in Africa’s largest economy.
