Lagos: The Manufacturers Association of Nigeria (MAN) has urged Lagos State to simplify its tax structure in an effort to support industrial growth and attract fresh investment. Chairman of MAN, Apapa Branch, Mr. Raphael Danilola, made the appeal on Tuesday during the branch’s Annual Business Luncheon themed ‘Simplifying Tax Compliance for Manufacturers: Expectations from the State Tax Authority.’
According to News Agency of Nigeria, Danilola highlighted that multiple taxation and complex compliance procedures continue to discourage investment, especially among small and medium-scale manufacturers. He emphasized the need for policy alignment following recent Federal Government tax reforms and urged Lagos to lead the implementation of reforms that improve competitiveness, block leakages, and strengthen investor confidence. Additionally, he called for stricter enforcement of tax compliance systems across industrial clusters, warning that without balanced implementation, the reforms might fall short of expectations.
MAN President, Mr. Francis Meshioye, noted that Lagos contributes over 60 percent of Nigeria’s manufacturing output but the sector remains burdened by regulatory inefficiencies and rising compliance costs. Citing MAN’s H2 2025 Economic Review, Meshioye revealed that capacity utilization had fallen to 54.1 percent, with 72 percent of manufacturers identifying tax complexity as a major business constraint. Manufacturers reportedly spend about 18 man-days monthly meeting tax obligations, and 84 percent of them pay more than five state and local levies.
In response to these challenges, Meshioye proposed a ‘One Lagos, One Tax Framework’ to harmonize levies into a single annual demand notice. He also suggested the introduction of a ‘Lagos Manufacturing Tax Compliance Certificate’ for compliant businesses, which would attract incentives, faster approvals, and priority access to government opportunities.
Responding to these proposals, Chairman of the Lagos State Internal Revenue Service (LIRS), Mr. Ayodele Subair, represented by Mr. Olusegun Oki, acknowledged the importance of the suggestions. He noted that the Nigeria Tax Act 2025 marked a major policy shift, introducing a simpler, transparent, and digitally-driven tax system. Key reforms under the Act include simplified withholding tax procedures and a zero percent withholding tax on goods supply, aimed at easing manufacturers’ tax burden.
Subair encouraged manufacturers to adopt digital tax systems and maintain accurate financial records, emphasizing that success under the new framework depends on a partnership between tax authorities and taxpayers. Similarly, Lagos Commissioner for Commerce, Cooperative, Trade and Investment, Mrs. Folasade Ambrose-Medebem, reaffirmed the state’s commitment to industrial growth. She stated that efficient taxation is critical to the ease of doing business and highlighted ongoing reforms aimed at simplifying procedures and reducing administrative bottlenecks.
Ambrose-Medebem acknowledged concerns over multiple taxation and pledged continued engagement with manufacturers. She also mentioned that Lagos’ Industrial Policy 2025-2030 would strengthen infrastructure, value chains, and local production, with government interventions addressing challenges in Apapa’s industrial corridor through traffic reforms and road rehabilitation.