Local manufacturers contributed N1.17 trillion in value-added tax (VAT) in 2025 despite an increasingly tough operating environment, persistent business environment challenges, rising energy costs and infrastructure constraints, the president of the Lagos Chamber of Commerce and Industry (LCCI), Leye Kupoluyi, has said. 

Speaking on the state of the economy, he urged the government to, as a matter of urgency, resolve the numerous constraints in the manufacturing sector. He added that, despite the near-collapse of the sector, they still contributed significantly through VAT, noting that the sector could do much more if it were thriving.

The sector’s VAT contribution represented a  45.61 per cent increase from the N803.53 billion recorded in 2024, while Company Income Tax (CIT) contribution rose to N881.29 billion from N663.46 billion in the previous year, reflecting a 32.83 per cent increase.

Despite this strong revenue performance, he regretted that players in the manufacturing sector continue to face significant operational challenges, especially unstable electricity supply, rising logistics and alternative energy costs, FX pressures, and skyrocketing production costs.
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He decried the fact that many businesses are now spending even more on diesel and other alternative power sources in the face of worsening electricity supply, despite many assurances made to businesses when they were being forced onto Band A a few years ago. 

He warned that the poor state of power supply remains one of the biggest impediments to business operations and industrial productivity, noting that businesses cannot be expected to survive if the situation persists. 
He also raised concerns over delays in capital budget releases and unpaid contractor obligations. 

He also expressed concern over the high import duties imposed on paper, printing materials and related consumables, noting that the current policy continues to increase production costs for businesses operating in the printing, publishing, packaging, education, advertising and manufacturing value chains.

“This situation, combined with port delays, multiple regulatory checks, inconsistent tariff classifications and administrative bottlenecks, significantly increases production costs and affects the prices of essential printed materials.   

“We strongly advocate for a review of import duties, full integration of regulatory agencies into the National Single Window (NSW), standardisation of tariff classifications and deliberate efforts to reduce cargo clearance timelines without introducing additional costs,” he said.

He went on to add that a practical policy mix of moderate tariffs, support for local manufacturing and stable macroeconomic conditions will strengthen the printing and packaging industries, lower business costs and contribute to broader economic growth.

Touching again on the NSW, he stressed that the system should not follow the path of its predecessors and deliver real-time interoperability among all trade-related government agencies, eliminate duplication, reduce delays, lower transaction costs, and significantly improve transparency across the import and export process.

He stressed the need for stronger investment in productive infrastructure, an improved power supply, fiscal reforms, and economic policies that support industrial growth, job creation, productivity, lower production costs, and business sustainability across the country.