The Manufacturers Association of Nigeria (MAN) has raised concerns about the impact of multiple taxation on the operations of manufacturers in the country, affecting their ability to compete under the African Continental Free Trade Area (AfCFTA) agreement.
Segun Ajayi-Kadir, the Director General of MAN, highlighted these issues at the closing of the 26th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), themed ‘Sustainable Tax Culture and Economic Roadmap for Nation Building’. He noted that the push for increased Internally Generated Revenue (IGRs) has resulted in heavier tax burdens, undermining manufacturers’ profitability and competitiveness.
Ajayi-Kadir explained that the duplication of taxes raises production costs and the final prices of goods and services, which in turn erodes profit margins and discourages investment. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), echoed these sentiments, emphasizing that Nigerian manufacturers face significant operational costs. He pointed out the need for a more sustainable business environment, especially for manufacturers struggling with high energy and logistics costs, supply chain challenges, forex volatility, and customs duty exchanges.
Source: Daily Trust