The Manufacturers Association of Nigeria (MAN) has raised concerns over the Federal Government’s proposed Tax Stamp System for excisable products, warning that it could increase production costs, hurt consumers, and conflict with the Nigeria Tax Act 2025. While acknowledging the government’s efforts to modernize tax administration, MAN emphasized that the new policy risks reversing the benefits introduced under the 2025 Tax Act.
Segun Ajayi-Kadir, MAN’s Director-General, explained that the tax stamp system could act as a hidden tax on industries, disproportionately affecting small and medium-sized enterprises. “The introduction of a tax stamp system amounts to giving with one hand and taking back with the other. Compliance costs will eventually be passed on to consumers, worsening inflationary pressures,” he said.
MAN also warned that the policy could push consumers toward cheaper, illicit products, while undermining the competitiveness of Nigerian manufacturers in the African Continental Free Trade Area. Ajayi-Kadir cited international experiences in Ghana and Uganda, where tax stamp systems created high operational costs and bottlenecks, yet failed to significantly curb illicit trade.
The association highlighted that Nigeria already has robust digital tools such as the Customs’ B’Odogwu Automated Excise Register System and the Federal Inland Revenue Service’s e-invoicing platform, which provide real-time monitoring of excise operations. According to MAN, these systems make the proposed tax stamps redundant and potentially harmful to local manufacturing, job creation, and investment.
Ajayi-Kadir urged the government to delay any roll-out of tax stamps until thorough stakeholder engagement and impact assessments are conducted. He recommended strengthening existing digital fiscal tools, enhancing border enforcement, and implementing smarter, cost-effective alternatives such as targeted audits and risk-based compliance checks. “Tax stamps often hinder local industry, erode gains in tax simplification, and yield limited revenue impact,” he concluded.
source: punch