Nigerian Manufacturers Warn of Sector Collapse Under Burden of Multiple Taxation and Infrastructure Deficits

Nigerian manufacturers call for urgent tax reform and better infrastructure as multiple levies and poor roads threaten the sector's survival in 2026.

By: AXL Media

Published: Apr 13, 2026, 4:07 AM EDT

Source: Information for this report was sourced from LEADERSHIP

A Sector Pushed to the Brink of Exhaustion

The manufacturing landscape in Nigeria is currently navigating an unprecedented era of operational volatility as internal systemic pressures begin to outweigh output potential. Frank Onyebu, who serves as the Chairman of the Manufacturers Association of Nigeria (MAN) for the Apapa Branch, recently articulated a grim outlook for the industry during a briefing in Lagos. According to Onyebu, the convergence of multiple tax demands and a lack of basic industrial support is placing unbearable weight on firms that are already struggling to maintain a presence in the local market.

The Paralysis of Overlapping Fiscal Demands

Central to the industry's grievance is the aggressive and uncoordinated approach taken by federal, state, and local tax authorities. Onyebu reported that administrative teams from various tiers of government frequently descend upon production facilities simultaneously, each demanding different levies and fees. This lack of a unified tax framework has created a chaotic environment where manufacturers are overwhelmed by the sheer volume of compliance requests. According to Onyebu, these administrative groups come in droves, which significantly interrupts production and places heavy pressure on entities that should be supported by the state.

Operational Hostility and Production Stoppages

The method of tax enforcement has become as damaging as the financial burden itself, with reports of factory floors being effectively silenced by government officials. In several instances, tax enforcement teams have reportedly shuttered production lines for hours to force compliance, a practice that Onyebu describes as creating a hostile business environment. These forced halts do more than just delay shipments, they disrupt the complex technical processes of manufacturing and erode the overall productivity of the formal sector. Manufacturers are often easy targets for these tactics because of their visibility and formal registration, unlike the informal sector which largely evades such scrutiny.