The Manufacturers Association of Nigeria (MAN) has expressed strong support for the ongoing fiscal policy and tax reforms, while calling for faster tax harmonisation across states to fully address the long-standing burden of multiple taxation on manufacturers.

MAN made this position known during a recent hybrid stakeholder engagement with the Presidential Committee on Fiscal Policy and Tax Reforms, where industry leaders and policymakers examined the implications of the new tax laws on Nigeria’s manufacturing sector.

At the session, stakeholders highlighted several benefits of the reforms, which are expected to ease operational pressures on manufacturers and improve the overall business environment.

According to MAN, one of the major gains is tax harmonisation, which aims to eliminate multiple and overlapping taxes that have historically increased production costs. The reforms also expand input VAT credits and strengthen incentives for priority sectors, offering manufacturers better cost recovery and investment motivation.

The association further commended the push for efficiency through technology, noting that the adoption of digital tools and automation will simplify tax compliance, modernise administration, and eliminate burdensome requirements such as the certificate of acceptance for fixed assets as a condition for capital allowance.

On equity and fairness, MAN welcomed the rationalisation of distortionary incentives and the introduction of higher tax exemption thresholds for small businesses, which are expected to support SMEs and promote inclusive growth.

Manufacturers also applauded the removal of withholding tax and turnover tax on manufacturers, describing it as a critical step toward conserving cash flow and preventing the taxation of capital rather than profit. In addition, the proposed Office of the Tax Ombud was described as a milestone in taxpayer protection, aimed at safeguarding rights and curbing harassment and exploitation by tax authorities.

Despite the positive outlook, MAN identified areas requiring further clarification and policy action. These include concerns over high import tariffs on certain raw materials, the tax treatment and exemptions for exports, and the urgent need for states to accelerate the adoption of tax harmonisation laws to complement federal reforms and curb multiple taxation by state and non-state actors.

The engagement featured a robust question-and-answer session, allowing manufacturers to directly engage policymakers on implementation challenges and expectations.

MAN stressed that while the reforms are a step in the right direction, their success largely depends on coordinated implementation across all tiers of government, particularly at the state level, to ensure a truly enabling environment for manufacturing and industrial growth in Nigeria.