The Manufacturers Association of Nigeria (MAN) has voiced strong reservations over the federal government’s proposal to introduce a tax stamp system for excisable goods, warning that it risks undermining recent reforms and placing an undue burden on local producers.
In a statement issued, MAN Director-General Segun Ajayi-Kadir said the measure could erode the benefits of the Nigeria Tax Act 2025, which was designed to harmonise the country’s tax regime and simplify compliance for businesses. He argued that, rather than creating efficiencies, tax stamps often generate high costs, operational bottlenecks and minimal improvements in government revenue.
The Association cautioned that small and medium-sized enterprises (SMEs) would be disproportionately affected, as the additional compliance expenses would likely translate into higher consumer prices. Such an outcome, it warned, could push buyers towards illicit and unregulated products, thereby weakening the competitiveness of local manufacturing while inadvertently encouraging the black market.
Ajayi-Kadir stressed that Nigeria already has functioning digital mechanisms to ensure transparency and traceability in excisable goods. He pointed to the Customs Service’s Automated Excise Register System (ERS) and the Federal Inland Revenue Service’s e-invoicing platform, both of which, he said, are capable of monitoring compliance without imposing extra costs on businesses.
MAN therefore urged the government to reconsider the tax stamp proposal, advocating instead for more cost-effective measures to combat illicit trade. These, the group suggested, could include strengthening border enforcement, deploying smarter surveillance, and expanding the use of digital monitoring tools already in place.
The Association further called for stakeholder consultations and thorough impact assessments before any final decision is made, stressing that inclusive dialogue would prevent policies that stifle the industrial sector. “What is needed now is consolidation of the gains of tax harmonisation, not the introduction of fresh burdens that threaten to roll back progress,” the statement said.
The intervention underscores growing tensions between policymakers and industry players as Nigeria seeks to broaden its tax base while also pursuing economic growth. For manufacturers, the fear is that well-intentioned reforms could inadvertently raise costs, undermine competitiveness and slow the momentum of a sector that remains central to job creation and national development.
