Manufacturers warn multiple taxes threaten competitiveness - The Guardian Nigeria News

Manufacturers have warned that multiple taxes, levies and charges imposed by the three tiers of government are increasing production costs and undermining the competitiveness of Nigerian industries, urging authorities to urgently harmonise the various taxes imposed on businesses.

The warning was issued at the 54th Annual General Meeting of the Kano-Jigawa Branch of the Manufacturers Association of Nigeria (MAN).

This is even as many of the manufacturers attending the AGM thronged the Dangote Group’s pavilion at the exhibition to seek information and clarification on the ongoing initial public offer (IPO) of the Dangote Petroleum Refinery and Petrochemicals. Dangote Industries Limited is one of the sponsors of the 54th MAN AGM.

The Dangote Refinery IPO offers Nigerians and other eligible investors an opportunity to purchase shares in the company and become part-owners of one of Africa’s largest industrial projects. The offer opened on September 14 and is scheduled to close on October 13, 2026.

A statement from the Dangote Group said  the manufacturers expressed strong interest in the offer which they said was a rare opportunity to be part of a global investment.

They also raised concerns over high energy costs, inadequate infrastructure, expensive financing, insecurity, foreign exchange challenges and the influx of imported goods.

Chairman of the MAN Sharada/Challawa Branch, Alhaji Nura Madugu, particularly condemned what he described as double and multiple taxation, saying the practice was placing locally manufactured products at a disadvantage against imports.

“We are especially concerned about instances of double and even multiple taxation, where the three tiers of government impose what is essentially the same levy under different names and different guises,” Madugu said.

He said the tax burden was being compounded by the high cost of alternative power supply and volatility in the foreign exchange market, further weakening manufacturers’ ability to compete.

Madugu urged the Kano State and Federal Governments to reduce the tax burden on manufacturers and accelerate efforts to harmonise taxes and levies imposed on businesses.

He said manufacturers continued to make significant contributions to the economy through employment generation, tax payments and investments in their host communities.

“We provide employment to thousands of Nigerians. We participate actively in tax revenue generation for the states and the federation through the deduction of Value Added Tax on our products, the remittance of Pay-As-You-Earn on behalf of our staff, and the payment of Withholding Tax, Education Tax, Tertiary Education Tax, Company Income Tax, and a whole host of other levies too numerous to mention individually,” he said.

“Even though what we receive in return remains modest, we continue, in strength and in good faith, to serve this nation and to hold up its economy. We do this because we believe in Nigeria and in Kano State. But it must be said plainly.”

Also speaking, MAN Chairman, Bompai/Jigawa Branch, Mohammed Bello Umar, said manufacturers remained under serious pressure from rising energy costs, multiple taxes and levies, inadequate infrastructure, high financing costs, insecurity, foreign exchange difficulties and unfair competition from imported goods.

Umar also raised concerns over the importation of contraband and substandard products, warning that such goods undermine local manufacturers who invest heavily in production, employment and regulatory compliance.

He called for stronger enforcement at Nigeria’s borders and markets to curb smuggling, counterfeiting and the importation of products that compete unfairly with locally manufactured goods.

On electricity, Umar said reliable and affordable power remained critical to industrial development, while welcoming ongoing electricity reforms and efforts by the Kano State Government and State House of Assembly to establish a more effective electricity framework.

He urged the authorities to move swiftly on the reforms to create a more reliable, competitive and affordable electricity market for industries.