The Manufacturers Association of Nigeria (MAN) has raised alarm over the federal government’s plan to introduce a tax stamp system for excisable products, warning that it could hurt Nigeria’s economy, stifle investment, and threaten jobs.
Lessons From Abroad
While the government has modernised tax administration through the Nigeria Tax Act 2025 and eased burdens on small and medium-sized industries (SMIs), MAN’s Director General, Segun Ajayi-Kadir, cautioned that the tax stamp scheme could undermine these reforms.
“This proposal risks imposing hidden taxes, raising production costs, and reducing Nigeria’s competitiveness under the AfCFTA,” he warned.
Furthermore, Kadir highlighted global experience to illustrate the risks.
He explained that Gulf states succeeded with tax stamps because they enforced compliance strongly and provided government subsidies.
In contrast, African countries like Kenya, Ghana, and Tanzania faced soaring compliance costs, persistent smuggling, and market distortions.
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Digital Solutions Instead
Therefore, MAN urged the government to strengthen digital tax tools, such as the Excise Reporting System (ERS) and e-invoicing, rather than introducing measures that could burden manufacturers and consumers.
Moreover, Kadir stressed that the government must conduct comprehensive stakeholder engagement and impact assessments before rolling out any tax stamp policy.
He argued that Nigeria cannot afford policies that stifle local industry and trade.
By prioritising technology and smarter enforcement, MAN believes the government can improve compliance without threatening jobs, investment, or domestic manufacturing growth.
