Tax reform fails to stop multiple collectors visiting Nigerian manufacturers – MAN

The Nigeria Tax Act 2025, enacted to reduce multiple taxes and levies on manufacturers, has failed to fulfill its intended purpose according to the Manufacturers Association of Nigeria (MAN). MAN's Manufacturers’ CEOs Confidence Index (MCCI) for the second quarter of 2026 revealed that manufacturers continue to face visits from various tax authorities and regulators, despite the tax law's purported aim to curtail multiple taxation.

The association highlighted multiple taxation as the sixth-largest challenge that Nigerian manufacturers encountered in the second quarter of 2026, though its ranking improved from second place in Q1 2026. MAN's report pointed out that the continued presence of multiple tax collectors and regulators negated the tax reform's expected relief.

The Q2 2026 report by MAN underscored that, despite the improved ranking of multiple taxation, the tax reform has not effectively alleviated the burden on manufacturers. Other significant challenges for manufacturers included limited access to finance, frequent power outages, inadequate foreign exchange availability, high interest rates, and low patronage.

The Nigeria Tax Act was signed into law on June 26, 2025, as part of the Federal Government's broader initiative to revamp Nigeria's tax system and enhance revenue collection, with the reforms slated to commence on January 1, 2026. However, doubts were cast even before their implementation, primarily concerning higher Capital Gains Tax, the introduction of a Development Levy, uncertainties around Free Trade Zones and the Single Window Trade Platform.

A business survey conducted by the Central Bank of Nigeria (CBN) in July 2026 corroborated MAN's findings, showing that 70.8% of respondents identified multiple taxation as their most significant business constraint, ahead of insecurity and high interest rates. This suggests that, despite the Federal Government's efforts to simplify the tax system, taxation-related issues persist as a major concern for Nigerian manufacturers, indicating the necessity for more effective implementation of the government's tax reform agenda.