The Manufacturers Association of Nigeria (MAN) has called on the government to provide tax relief for manufacturers as they struggle with declining sales.
Segun Ajayi-Kadir, the Director General of MAN, highlighted during a phone conversation that manufacturers in Nigeria currently face between 60 and 120 different taxes from the three levels of government. He expressed concern over the heavy tax burden and urged the authorities to take action to alleviate the strain on the sector.
“Currently, manufacturers pay anywhere between 60 and 120 different taxes from the three tiers of government. If that is reduced to below 10, it will be a huge relief for us,” Ajayi-Kadir said.
The call for relief comes as manufacturers express concerns about their financial stability. The sector revealed that the value of unsold finished goods in the first half of 2024 rose by 42.93%, reaching ₦1.24 trillion, compared to ₦869.37 billion in 2023.
Ajayi-Kadir expressed optimism regarding the recently implemented withholding tax regime, which he described as a much-needed relief for manufacturers and businesses across Nigeria. He praised the development as a positive step, especially for small and medium-scale industries.
As a member of the Presidential Committee on Fiscal Policy and Tax Reform, Ajayi-Kadir noted that the reforms, which received approval from President Bola Tinubu, align with the committee’s recommendations. “I am very proud of this development,” he stated, highlighting the potential relief the tax reforms could provide to the business community.
The new withholding tax regime is part of a broader fiscal policy overhaul designed to simplify Nigeria’s complex tax system. One of the key elements of the reform is the exemption of businesses with a turnover of less than ₦50 million from withholding tax. Ajayi-Kadir applauded this measure, calling it a significant step towards supporting small enterprises.
“If we are going to have businesses which operate at less than N50m turnover freed from the burden of tax, it will be good not only for manufacturers but for Nigerians as well,” he added.
Ajayi-Kadir also pointed out that the new tax structure would have a positive impact on economic growth. The reform is expected to reduce the tax burden on manufacturers while allowing the government to collect taxes in a more streamlined and appropriate manner.
