The Manufacturers Association of Nigeria (MAN) reports that the implementation of the Nigeria Tax Act 2025 has failed to alleviate the issue of multiple tax levies. According to the second-quarter 2026 Manufacturers CEO Confidence Index, businesses are still frequently confronted by various tax collectors and regulatory bodies.
Segun Ajayi-Kadir, the Director-General of MAN, noted that the legislation has not yet fulfilled its promise of reducing the financial strain on the sector. While local raw material sourcing has seen some progress due to ongoing foreign exchange shortages, the broader business environment remains difficult.
The report highlights that while sales volume saw a slight uptick, high operational costs related to production and logistics are severely impacting profitability. Furthermore, concerns regarding insecurity threaten the small gains made in local procurement. Despite some stabilization of the naira, manufacturers continue to face significant obstacles, including poor infrastructure, scarce foreign currency, and restrictive trade policies.
