The Manufacturers Association of Nigeria has called on the Lagos State Government to simplify its tax structure to support industrial growth, reduce business bottlenecks and attract fresh investments into the manufacturing sector.

Chairman of MAN Apapa Branch, Raphael Danilola, made the appeal during the association’s annual business luncheon held in Lagos with the theme: “Simplifying Tax Compliance for Manufacturers: Expectations from the State Tax Authority”.

Danilola said multiple taxation and complex compliance procedures continued to discourage investments, particularly among small and medium-scale manufacturers.

According to him, manufacturers expect stronger policy alignment at the state level following recent tax reforms introduced by the Federal Government.

He urged Lagos State to take the lead in implementing reforms capable of improving competitiveness, blocking revenue leakages and strengthening investor confidence.

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

President of MAN, Francis Meshioye, said Lagos accounts for more than 60 per cent of Nigeria’s manufacturing output but noted that the sector remained weighed down by regulatory inefficiencies and rising compliance costs.

Citing MAN’s second half 2025 economic review, Meshioye disclosed that manufacturing capacity utilisation dropped to 54.1 per cent, while about 72 per cent of manufacturers identified tax complexity as a major business challenge.

He further revealed that manufacturers spend an average of 18 man-days monthly meeting tax obligations, with 84 per cent of firms paying more than five state and local levies.

Meshioye proposed a “One Lagos, One Tax Framework” aimed at harmonising levies into a single annual demand notice to ease compliance burdens on businesses.

“We expect the Lagos State Internal Revenue Service to champion a predictable tax system for manufacturers across Lagos,” he said.

Responding, Chairman of LIRS, Ayodele Subair, represented by Olusegun Oki, said the Nigeria Tax Act 2025 introduced a simpler, transparent and digitally-driven tax regime.

He noted that reforms such as simplified withholding tax procedures and zero per cent withholding tax on the supply of goods would significantly reduce manufacturers’ compliance costs.