The Manufacturers Association of Nigeria (MAN) has warned that the impact of multiplicity of taxes imposed on the manufacturing sector in Nigeria may hinder the sector from maximizing the potential gains in the African Continental Free Trade Area (AfCFTA).
The Director General of MAN, Mr. Segun Ajayi-Kadir, told the just concluded annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja that taxes from federal, state, and local governments impact manufacturing, hindering the development and competitiveness of the sector.
“The imposition of overlapping taxes has created compliance burdens, operational inefficiencies, and reduced profitability for manufacturers. Duplication of taxes increases production costs and final prices of goods and services, eroding profit margins and hindering investment incentives,” he said.
He noted that a survey conducted by MAN in 2023 revealed that numerous taxes with overlapping effects that add complexity and burden to businesses.
“Sales tax and Value Added Tax (VAT), mobile advertising charges, education levies, tenement rates, Land use charges, and parking fees contribute to financial burdens for manufacturers.
“Multiple taxes discourage investment, stifles entrepreneurship, and hampers economic growth, affecting small and medium industries (SMIs) disproportionately,” local media reports on Monday quoted Ajayi-Kadir as saying.
In his remarks, the Chief Executive Officer at Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, disclosed that many manufacturing investors are now migrating to the services sector due to high operating costs.
GIK/APA
Multiple taxes threaten AfCFTA gains – Nigerian manufacturers
