Multiple taxation remains a major burden on Nigerian manufacturers despite the enactment of the Nigeria Tax Act 2025, with companies still contending with multiple tax collectors, levies and regulatory visits, according to the Manufacturers Association of Nigeria (MAN).
MAN disclosed this in its Manufacturers’ CEOs Confidence Index (MCCI) for the second quarter of 2026, identifying the persistence of multiple taxation as one of the key challenges constraining the operating environment for manufacturers during the period.
The association said the Nigeria Tax Act 2025, which was partly designed to streamline the country’s tax system and prevent the imposition of multiple taxes and levies, had yet to deliver the expected relief to manufacturers.
According to MAN, manufacturers continued to receive visits from different tax authorities and regulators demanding various taxes, levies and related payments, despite the ongoing tax reform.
“While the government has enacted the Nigeria Tax Act 2025, which was in part aimed at forestalling multiple taxes and levies, manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026,” MAN stated.
The association added that the situation suggested that the implementation of the new tax framework had not yet achieved its objective of reducing overregulation and easing the tax burden on businesses.
“While the Nigeria Tax Act 2025 aimed to reduce overregulation, manufacturers reported ongoing visits from different tax authorities demanding various taxes and levies,” it added.
MAN said the continued presence of multiple tax collectors and regulators had undermined the relief manufacturers expected from the tax reform, particularly at a time when businesses were already facing significant operational and financial pressures.
“The implementation of the Nigeria Tax Act 2025 is yet to achieve its objective of relieving manufacturers of the burden of taxes and levies,” the association said.
The persistence of multiple taxation was ranked as the sixth-largest challenge confronting manufacturers in the second quarter of 2026.
However, its position improved from second place in the first quarter, indicating a relative reduction in the severity of the challenge compared with other constraints during the period.
Despite the improvement in ranking, MAN maintained that multiple taxation remained a significant concern because of its impact on business costs, compliance requirements and the time and resources manufacturers devote to dealing with different government agencies.
The association’s findings highlight the gap between the objectives of the tax reform and its implementation at the operational level, as manufacturers continue to call for greater coordination among tax authorities and regulators.
For manufacturers, the continued demand for different taxes and levies adds to the cost of doing business and compounds other structural challenges affecting production and investment decisions.
Limited access to finance emerged as the biggest challenge facing manufacturers in Q2 2026, reflecting continued difficulties in securing affordable funding for working capital, expansion and investment.
Frequent power outages ranked second, underscoring the persistent energy constraints confronting manufacturers and the additional costs businesses incur in providing alternative power sources to sustain production.
Inadequate foreign exchange availability ranked third, while high interest rates and low patronage ranked fourth and fifth respectively.
Multiple taxation ranked sixth on the list, ahead of other challenges identified by manufacturers during the quarter.
The findings underline the continued pressure on manufacturers from a combination of financing constraints, infrastructure deficits, foreign exchange challenges and regulatory costs, even as the government implements reforms aimed at improving the business environment.
MAN’s assessment suggests that achieving the objectives of the Nigeria Tax Act 2025 will depend not only on the enactment of the legislation but also on effective coordination and enforcement across the various levels of government and regulatory institutions.
The association’s concerns also point to the need for greater clarity over the respective tax and levy-collecting powers of government agencies to prevent duplication and ensure that manufacturers are not subjected to overlapping demands.
For the manufacturing sector, MAN said the effectiveness of the tax reform would ultimately be measured by whether businesses experience a tangible reduction in the number of tax collectors, levies and regulatory burdens they face in their day-to-day operations.
