Manufacturers have warned that multiple taxes, levies, and charges imposed across the three tiers of government are escalating production costs and undermining the competitiveness of Nigerian industries, while urging authorities to urgently harmonize the various levies placed on businesses.
The warning was delivered during the 54th Annual General Meeting of the Kano-Jigawa Branch of the Manufacturers Association of Nigeria (MAN).
Addressing attendees, the Chairman of the MAN Sharada/Challawa Branch, Alhaji Nura Madugu, specifically condemned what he termed double and multiple taxation, noting that the practice places locally manufactured products at a major disadvantage against imports.
“We are especially concerned about instances of double and even multiple taxation, where the three tiers of government impose what is essentially the same levy under different names and different guises,” Madugu stated.
He pointed out that this heavy tax burden is further compounded by the exorbitant cost of alternative power supplies and persistent volatility in the foreign exchange market, which collectively weaken the capacity of manufacturers to compete effectively.
Madugu appealed to both the Kano State and Federal Governments to alleviate the tax burden on manufacturers and accelerate measures to harmonize taxes and levies imposed on business enterprises.
He emphasized that manufacturers continue to make vital contributions to the national economy through employment generation, regular tax payments, and investments within their host communities.
“We provide employment to thousands of Nigerians. We participate actively in tax revenue generation for the states and the federation through the deduction of Value Added Tax on our products, the remittance of Pay-As-You-Earn on behalf of our staff, and the payment of Withholding Tax, Education Tax, Tertiary Education Tax, Company Income Tax, and a whole host of other levies too numerous to mention individually.”
“Even though what we receive in return remains modest, we continue, in strength and in good faith, to serve this nation and to hold up its economy. We do this because we believe in Nigeria and in Kano State. But it must be said plainly,” Madugu explained.
Also addressing the gathering, the MAN Chairman for the Bompai/Jigawa Branch, Mohammed Bello Umar, echoed similar sentiments, stating that manufacturers remain under severe pressure from rising energy expenditures, multiple taxation, deficient infrastructure, high financing expenses, insecurity, foreign exchange bottlenecks, and unfair competition from imported goods.
Umar also drew attention to the unchecked importation of contraband and substandard products, warning that such items severely undermine local manufacturers who invest heavily in domestic production, employment, and strict regulatory compliance.
He advocated for more stringent enforcement at Nigeria’s borders and open markets to curb smuggling, counterfeiting, and the circulation of products that unfairly rival locally made goods.
On the power sector, Umar stressed that reliable and affordable electricity remains critical for sustainable industrial development.
While welcoming ongoing electricity reforms and initiatives by the Kano State Government and the State House of Assembly to establish a more effective power framework, he urged authorities to expedite action on these reforms to foster a reliable, competitive, and affordable electricity market for industrial players.