The Manufacturers Association of Nigeria (MAN) has urged the Lagos State government to simplify its tax structure to support industrial growth and attract fresh investment.

Chairman of MAN, Apapa Branch, Mr Raphael Danilola, made the appeal on Tuesday in Lagos.

He spoke at the branch’s annual business luncheon with the theme, ‘Simplifying Tax Compliance for Manufacturers: Expectations from the State Tax Authority.’

Mr Danilola said multiple taxation and complex compliance procedures continued to discourage investment, especially among small and medium-scale manufacturers.

According to him, manufacturers expect policy alignment following the recent federal government tax reforms.

Mr Danilola urged Lagos to lead the implementation of reforms that improve competitiveness, block leakages, and strengthen investor confidence.

He also called for stricter enforcement of tax compliance systems across industrial clusters.

“Without balanced implementation, the reforms may fall short of expectations,” he said.

MAN President, Mr Francis Meshioye, said Lagos contributed over 60 per cent of Nigeria’s manufacturing output.

He, however, said the sector remained burdened by regulatory inefficiencies and rising compliance costs.

Citing MAN’s H2 2025 economic review, Mr Meshioye said capacity utilisation fell to 54.1 per cent.

He said 72 per cent of manufacturers identified tax complexity as a major business constraint.

Mr Meshioye added that manufacturers spent about 18 man-days monthly meeting tax obligations.

He said 84 per cent of manufacturers paid more than five state and local levies.

Mr Meshioye proposed a ‘One Lagos, One Tax Framework’ to harmonise levies into a single annual demand notice.

“We expect the LIRS to champion a predictable tax system for manufacturers across Lagos,” he said.

He also proposed a “Lagos Manufacturing Tax Compliance Certificate” for compliant businesses.

“Compliance should attract incentives, faster approvals, and priority access to government opportunities,” Mr Meshioye said.

Responding, Chairman of the Lagos State Internal Revenue Service (LIRS), Mr Ayodele Subair, welcomed the proposals.

Mr Subair, represented by Mr Olusegun Oki, a director in LIRS, said the Nigeria Tax Act 2025 marked a major policy shift.

He said the law introduced a simpler, transparent, and digitally driven tax system.

According to him, key reforms include simplified withholding tax procedures.

He added that a zero per cent withholding tax on the supply of goods would ease manufacturers’ tax burden.

“The new regime offers manufacturers lower compliance costs and improved predictability,” he said.

Mr Subair urged manufacturers to adopt digital tax systems and maintain accurate financial records.

“Success under this framework depends on partnership between tax authorities and taxpayers,” he said.

Lagos Commissioner for Commerce, Cooperative, Trade and Investment, Mrs Folasade Ambrose-Medebem, reaffirmed the state’s commitment to industrial growth.

She said Lagos recognised that efficient taxation remained critical to ease of doing business.

Mrs Ambrose-Medebem said the current reforms were aimed at simplifying procedures and reducing administrative bottlenecks.

“We want businesses spending more time producing, innovating, and creating jobs,” she said.

She acknowledged concerns over multiple taxation and pledged continued engagement with manufacturers.

She added that the Lagos Industrial Policy 2025–2030 would strengthen infrastructure, value chains, and local production.

Mrs Ambrose-Medebem said that government interventions were also addressing the challenges facing Apapa’s industrial corridor through traffic reforms and road rehabilitation. 

(NAN)