Multiple Taxes, Poor Infrastructure Crippling Manufacturers – MAN

The Manufacturers Association of Nigeria (MAN) has called for the harmonisation of taxes across all tiers of government, warning that multiple taxation and poor infrastructure are placing unbearable pressure on manufacturers and threatening the sector’s survival.

Chairman of MAN Apapa Branch, Frank Onyebu, made the call while addressing journalists in Lagos, where he described the current operating environment as extremely challenging due to overlapping tax demands and weak infrastructure.

Onyebu lamented that manufacturers are being overwhelmed by tax authorities from federal, state, and local governments, who often visit production facilities simultaneously to enforce different levies.

According to him, frequent visits by multiple tax administration teams not only impose financial pressure but also disrupt production processes, as factories are sometimes forced to halt operations to comply with tax enforcement activities.

“The tax administrative groups from different levels of government come in droves, interrupting production and placing heavy pressure on manufacturers who should ideally be supported,” he said.

He stressed the urgent need for a coordinated, effective tax harmonisation framework, noting that some ministries operate multiple tax collection units, which further compound the burden on manufacturers.

Onyebu painted a grim picture of an industry grappling with a combination of challenges, including poor infrastructure, foreign exchange constraints, inconsistent government policies, and high production costs.

He warned that the multiplicity of taxes imposed by various government agencies is eroding profit margins and driving up production costs, making locally manufactured goods less competitive.

“Infrastructure around industrial areas is in a deplorable state, while multiple taxation continues to squeeze manufacturers. This is making the sector less attractive to investors,” he stated.

The MAN chairman also noted that manufacturers, due to their visibility and formal structure, are often easy targets for tax authorities, unlike operators in the informal sector, who largely remain outside the tax net.

He added that in some cases, tax enforcement officials shut down production lines for hours to demand compliance, creating a hostile business environment and further disrupting output.

Onyebu warned that if the situation persists, more manufacturers may be forced to abandon local production in favour of importation, a trend he described as detrimental to Nigeria’s industrialisation drive.

He therefore called on the government to urgently address key challenges facing the sector, including improving infrastructure, ensuring a stable power supply, and streamlining tax administration.

“Government needs to recognise the importance of manufacturing. These companies create jobs and reduce import dependence. They should be supported, not overburdened,” he said.