Manufacturers warn of shutdowns over tax burden, Infrastructure decay

The Manufacturers Association of Nigeria (MAN) has asked the government to simplify and unify taxes across all levels, saying that too many taxes and poor infrastructure are putting serious pressure on manufacturers.

The Chairman of MAN Apapa Branch, Frank Onyebu, spoke to journalists in Lagos. He said businesses are facing very tough conditions because of too many taxes and weak infrastructure.

Onyebu explained that tax officials from federal, state, and local governments often visit factories at the same time to collect different taxes.

This creates financial stress and disrupts work, as companies sometimes have to stop production to attend to them.

He said these repeated visits interrupt operations and make it harder for manufacturers to function properly.

Onyebu also called for an urgent and proper system that will combine and manage taxes better. He noted that some government agencies even have multiple units collecting different taxes, which makes the problem worse.

He described the manufacturing sector as struggling with many challenges, including poor infrastructure, difficulty accessing foreign exchange, unstable government policies, and high production costs.

According to him, multiple taxes are reducing profits and increasing the cost of making goods, making Nigerian products less competitive.

He added that roads and facilities around industrial areas are in bad condition, which discourages investors.

Onyebu pointed out that manufacturers are easy targets for tax authorities because they are well-structured businesses, unlike many in the informal sector who do not pay taxes.

He also said that some officials shut down factory operations for hours while enforcing tax payments, creating an unfriendly business environment.

He warned that if the situation continues, more companies may stop producing locally and turn to importing goods, which could harm Nigeria’s industrial growth.

Onyebu urged the government to act quickly by improving infrastructure, ensuring stable electricity, and making tax systems simpler.

He stressed that manufacturers are important because they create jobs and reduce the need for imports, and should be supported rather than overburdened.