The Manufacturers Association of Nigeria (MAN) has urged the Lagos State Government to simplify its tax structure to support industrial growth and attract fresh investments.
Mr. Raphael Danilola, Chairman of MAN, Apapa Branch, made the appeal on Tuesday in Lagos at the branch’s Annual Business Luncheon. The event was themed: ‘Simplifying Tax Compliance for Manufacturers: Expectations from the State Tax Authority.’
Danilola said multiple taxation and complex compliance procedures continue to discourage investment, particularly among small and medium-scale manufacturers. He noted that manufacturers expect Lagos to align with recent Federal Government tax reforms by implementing changes that improve competitiveness, block revenue leakages, and strengthen investor confidence.
He also called for stricter enforcement of tax compliance across industrial clusters. “Without balanced implementation, the reforms may fall short of expectations,” he said.
MAN President, Mr. Francis Meshioye, stated that Lagos contributes over 60 per cent of Nigeria’s manufacturing output. However, he noted that the sector remains burdened by regulatory inefficiencies and rising compliance costs.
Citing MAN’s H2 2025 Economic Review, Meshioye revealed that capacity utilization fell to 54.1 per cent. He added that 72 per cent of manufacturers identified tax complexity as a major business constraint, while manufacturers spend an average of 18 man-days monthly on tax obligations. He also disclosed that 84 per cent of manufacturers pay more than five state and local levies.
Meshioye proposed a ‘One Lagos, One Tax Framework’ to harmonize all levies into a single annual demand notice. “We expect LIRS to champion a predictable tax system for manufacturers across Lagos,” he said.
He further proposed a “Lagos Manufacturing Tax Compliance Certificate” for compliant businesses, saying compliance should attract incentives, faster approvals, and priority access to government opportunities.
In response, Chairman of the Lagos State Internal Revenue Service (LIRS), Mr. Ayodele Subair, represented by Director Mr. Olusegun Oki, welcomed the proposals. He said the Nigeria Tax Act 2025 marks a major policy shift towards a simpler, transparent, and digitally driven tax system.
Subair noted that key reforms include simplified withholding tax procedures and zero per cent withholding tax on goods supply, which will ease the tax burden on manufacturers.
“The new regime offers manufacturers lower compliance costs and improved predictability,” he said. He urged manufacturers to adopt digital tax systems and maintain accurate financial records.
Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folasade Ambrose-Medebem, reaffirmed the state’s commitment to industrial growth. She acknowledged concerns about multiple taxation and pledged continued engagement with manufacturers.
Ambrose-Medebem said current reforms are designed to simplify procedures and reduce administrative bottlenecks. “We want businesses spending more time producing, innovating, and creating jobs,” she said.
She added that the Lagos Industrial Policy 2025–2030 would strengthen infrastructure, value chains, and local production, while government interventions are addressing challenges in the Apapa industrial corridor through traffic reforms and road rehabilitation.
