The Manufacturers Association of Nigeria has urged the Lagos State Government to simplify its tax structure in order to support industrial growth, reduce business bottlenecks and attract more investments into the manufacturing sector.
Chairman of MAN Apapa Branch, Raphael Danilola, made the call during the association’s annual business luncheon held in Lagos. The event focused on the theme “Simplifying Tax Compliance for Manufacturers: Expectations from the State Tax Authority.”
Danilola stated that multiple taxation and complicated compliance procedures continue to discourage investment, especially among small and medium scale manufacturers. He explained that manufacturers expect stronger policy alignment at the state level following recent tax reforms introduced by the Federal Government.
According to him, Lagos State has a major role to play in implementing reforms that will improve competitiveness, block revenue leakages and strengthen investor confidence within the manufacturing industry.
President of MAN, Francis Meshioye, noted that Lagos contributes more than 60 percent of Nigeria’s manufacturing output. However, he said the sector still struggles with regulatory inefficiencies and rising compliance costs.
Meshioye revealed that manufacturing capacity utilisation dropped to 54.1 percent in the second half of 2025. He also disclosed that many manufacturers spend significant time meeting tax obligations, while several firms continue to pay multiple state and local levies.
To address the challenge, he proposed a “One Lagos One Tax Framework” aimed at harmonising levies into a single annual demand notice to ease compliance burdens on businesses.
Responding to the concerns, Chairman of Lagos State Internal Revenue Service, Ayodele Subair, represented by Olusegun Oki, said the Nigeria Tax Act 2025 introduced a simpler and more transparent digital tax regime designed to reduce manufacturers’ compliance costs.
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