Tax reform fails to stop multiple collectors visiting Nigerian manufacturers

The Nigeria Tax Act 2025 has yet to eliminate multiple taxes and levies imposed on manufacturers, with companies still facing visits from different tax authorities and regulators, according to the Manufacturers Association of Nigeria (MAN).

MAN disclosed this in its Manufacturers’ CEOs Confidence Index (MCCI) for the second quarter of 2026, noting that the continued burden of multiple taxation was among the major challenges confronting manufacturers during the quarter.

The association said the tax law, which was partly designed to prevent multiple taxes and levies, had not yet achieved its intended objective of reducing the tax burden on manufacturers.

Multiple taxation ranked as the sixth-largest challenge for manufacturers in Q2 2026, although its ranking improved from second place in Q1 2026.

What MAN is saying

MAN said manufacturers continued to encounter multiple tax collectors and regulators despite the enactment of the Nigeria Tax Act 2025.

“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,” the association stated.
“While the Nigeria Tax Act 2025 aimed to reduce overregulation, manufacturers reported ongoing visits from different tax authorities demanding various taxes and levies,” the association added.

According to MAN, the continued encounters with multiple tax collectors meant that the tax reform had yet to deliver the relief expected by manufacturers.

“The implementation of the Nigeria Tax Act 2025 is yet to achieve its objective of relieving manufacturers of the burden of taxes and levies,” it said.

MAN’s Q2 2026 report showed that multiple taxation remained a significant challenge despite its improved ranking during the quarter.

Limited access to finance ranked as the biggest challenge facing manufacturers, followed by frequent power outages and inadequate foreign exchange availability. High interest rates and low patronage ranked fourth and fifth respectively, while multiple taxation ranked sixth.

Get up to speed

Nigeria’s new tax regime was signed into law on June 26, 2025, as part of the Federal Government’s broader effort to overhaul the country’s tax system and improve revenue collection.

The four laws — the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025 and Joint Revenue Board (Establishment) Act (JRBEA) 2025 — were officially published in the government gazette in September 2025.

The publication marked a major step towards implementing the reforms, which were designed to modernise Nigeria’s tax framework, improve compliance and create a more business-friendly environment. The reforms were scheduled to take effect from January 1, 2026.

However, concerns about the reforms emerged even before their implementation.

In October 2025, the Alliance for Economic Research and Ethics LTD/GTE called for stronger public expenditure tracking and independent audits alongside the tax reforms, arguing that increased tax collection would need to be matched by greater accountability in public spending.
By November 2025, the organisation had also raised concerns about the potential economic impact of the Nigeria Tax Act, warning that some provisions could reduce business profitability, discourage investment and weaken Nigeria’s competitiveness.

The assessment particularly pointed to higher Capital Gains Tax, the introduction of a Development Levy, uncertainty around Free Trade Zones and the Single Window Trade Platform.

What you should know

The concerns raised by MAN also appear in a broader business survey by the Central Bank of Nigeria (CBN).

According to the CBN’s Business Expectations Survey for July 2026, 70.8% of respondents identified high and multiple taxation as their most pressing business constraint, ahead of insecurity and high interest rates.

The report indicates that, despite the Federal Government’s efforts to simplify the tax system, taxation-related issues continue to outweigh other business concerns, underscoring the need for more effective implementation of the government’s tax reform agenda.