MAN and Presidential Tax Committee Deliberate on New Tax Laws’ Impact on Manufacturing

The Manufacturers Association of Nigeria

The Manufacturers Association of Nigeria (MAN) and the Presidential Committee on Fiscal Policy and Tax Reforms have engaged in high-level deliberations to assess the potential impact of newly enacted tax laws on the country’s industrial sector. The meeting, held on 16 January 2026, focused on ensuring that the implementation of these reforms supports manufacturing competitiveness while achieving the Federal Government’s revenue mobilisation targets.

Evaluating the New Tax Framework

The primary objective of the engagement was to address concerns raised by industrial stakeholders regarding the transition to a consolidated tax system. The Manufacturers Association of Nigeria has consistently advocated for a streamlined tax regime that reduces the burden of multiple taxation on the real sector. During the session, the Presidential Committee, led by its Chairman, Mr Taiwo Oyedele, provided technical insights into how the new legislation intends to simplify compliance for large-scale manufacturers and Small and Medium Enterprises (SMEs).

According to the Presidential Committee, the new laws are designed to shift the tax burden away from production toward consumption. This strategy aims to incentivise investment in local manufacturing by offering clear credits for value-added processes. However, MAN representatives emphasised the need for a transitional period to allow companies to align their financial reporting systems with the new requirements.

Addressing Manufacturing Competitiveness and Costs

A significant portion of the discussion centered on the cost of doing business in Nigeria. MAN highlighted that the manufacturing sector currently faces significant headwinds, including high energy costs and currency volatility. The association argued that any new tax obligations must be balanced with fiscal incentives that protect the margins of local producers against cheaper imported goods.

According to data presented during the meeting, the manufacturing sector’s contribution to the Gross Domestic Product (GDP) remains sensitive to changes in corporate income tax and excise duties. The Presidential Committee assured stakeholders that the reforms include specific provisions to eliminate nuisance taxes—small, inefficient levies that increase administrative costs without significantly contributing to the national treasury.

Framework for Future Collaboration

To ensure a smooth implementation process, both parties agreed to establish a continuous feedback mechanism. This framework will allow the Manufacturers Association of Nigeria to report real-time challenges encountered during the rollout of the new tax laws. The Presidential Committee also committed to conducting nationwide sensitisation workshops to educate industrial accountants and tax managers on the nuances of the legislation.

Mr Oyedele reiterated that the committee's mandate is to create a "business-friendly" tax environment that achieves a tax-to-GDP ratio of 18% within the next three years. He noted that achieving this target requires a healthy, expanding manufacturing base rather than an increase in the tax rates applied to existing players.

The engagement between MAN and the Presidential Tax Committee underscores the government’s recognition of the manufacturing sector as a critical driver of economic recovery. While the new tax laws represent a fundamental shift in Nigeria’s fiscal policy, the collaborative approach taken by stakeholders suggests a commitment to mitigating unintended negative consequences. For investors and policymakers, the success of these reforms will be measured by their ability to increase government revenue without stifling the growth of the nation’s industrial capacity.