MAN urges Lagos to harmonise tax code
The Manufacturers Association of Nigeria (MAN) has called on the Lagos State Government to publish a harmonised tax code aligned with new tax laws to significantly reduce compliance costs for manufacturers.
Intelligence analysis by Gemini 2.5 Flash
MAN President, Francis Meshioye, urged Lagos to implement a single system for tax assessment and payment, eliminating duplication and uncertainty across government agencies. This move, he argued, would leverage the 2025 Tax Law's opportunity to streamline taxation, protect against multiple levies, and ensure taxes contribute to improved infrastructure and security.
Imagine if you had to pay for your school lunch by giving a little money to the cook, then a little to the principal, and then a little to the janitor, all for the same meal! It would be super confusing and take forever. Big factories in Lagos, Nigeria, feel like that with their taxes. They want the government to make it simple: one place to figure out how much they owe, and one place to pay it all, like paying just one person for your lunch. This would save them time and money, so they can make more cool stuff and hire more people.
Analysis
The Manufacturers Association of Nigeria (MAN) has issued a strong appeal to the Lagos State Government, urging it to take a pioneering step by publishing a harmonised tax code. This call comes in the wake of Nigeria's new tax laws, which took effect on January 1, 2026, and aim to simplify the country's complex tax landscape. MAN believes that a unified tax code in Lagos would drastically cut compliance costs for manufacturers, fostering a more predictable and business-friendly environment.
The 2025 Tax Law
The recently enacted 2025 Tax Law presents a significant opportunity for Nigeria to overhaul its tax system, which has historically been plagued by multiplicity and inefficiency. According to MAN President Francis Meshioye, this legislation offers a "once-in-a-generation opportunity to reset" the tax framework by harmonising, digitising, and reducing friction. The law's intent is to consolidate numerous taxes and levies, which manufacturers previously reported paying between 120 and 160 different types, into a more manageable structure. Effective implementation at the sub-national level, particularly in economically vital states like Lagos, is seen as critical to realising the law's full potential, including expanding the tax base by bringing more non-compliant entities into the tax net.
Francis Meshioye's Demands
Francis Meshioye, speaking at the 55th Annual General Meeting of MAN's Apapa Branch, outlined several key demands for the Lagos State Government. Central to his appeal is the establishment of a single assessment authority and a single payment portal for manufacturers, which would eliminate the current burden of dealing with multiple agencies and levels of government. Beyond tax harmonisation, Meshioye also advocated for a "No-Tout Zone" policy in industrial areas like Apapa, Amuwo, and Kirikiri to combat illegal levies imposed by non-state actors. Furthermore, he urged collaboration with the Nigerian Ports Authority and the Nigerian Shippers’ Council to create a single bill for port-related charges, streamlining logistics for raw material imports and finished goods exports. MAN's stance is not to seek tax exemptions, but rather to ensure that paid taxes translate into tangible benefits such as improved infrastructure and enhanced security within industrial clusters, fulfilling the social contract between businesses and the government.
Joint Revenue Board's Role
The Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, provided insights into the progress already made under the new tax administration framework. He highlighted that the framework has successfully reduced over 100 taxes at the sub-national level to just nine unified revenue heads. These consolidated categories include income tax, stamp duty, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge, and daily tickets. Crucially, Adesokan noted that the new framework has also abolished roadblocks previously mounted for revenue collection along transportation corridors and explicitly prohibited cash tax payments, aiming to enhance transparency and reduce opportunities for illicit collections. These measures, if fully domesticated and implemented by sub-national governments, are expected to significantly ease the operational burden on manufacturers and foster a more conducive business environment, ultimately leading to increased business expansion, investment, and employment.
Key points
- MAN urges Lagos State to publish a harmonised tax code aligned with the new 2025 Tax Law to reduce compliance costs for manufacturers.
- The association calls for a single system for tax assessment and payment to eliminate duplication and uncertainty across government agencies.
- MAN President Francis Meshioye advocates for a 'No-Tout Zone' in industrial areas and a single bill for port-related charges.
- The new tax administration framework has reduced over 100 sub-national taxes to nine unified revenue heads and abolished roadblocks for revenue collection.
- Manufacturers seek for their paid taxes to translate into better infrastructure and security, fostering business expansion and employment.
If Lagos successfully harmonises its tax code and implements the new laws effectively, manufacturers could see a significant reduction in compliance costs and administrative burdens. This streamlining could encourage business expansion, attract more investment, and lead to increased employment opportunities, ultimately boosting the state's economic growth and competitiveness.
Should the Lagos State Government fail to fully domesticate and implement the new tax framework, or if various agencies continue to impose multiple levies, manufacturers will remain burdened by high operating costs. This could stifle business growth, deter new investments, and potentially lead to job losses, undermining the intended benefits of the tax reform.
