Manufacturers in Nigeria have urged the government to address multiple taxation, rising energy costs and persistent inflation. They warned that the challenges are threatening the survival and competitiveness of industries across the country.

The concerns were raised at the 41st yearly general meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Ogun State Branch, held in Abeokuta.

The operators said persistent inflation, FX volatility, high electricity tariffs, rising interest rates and overlapping taxes have sharply increased production costs, weakened consumer purchasing power, and reduced the competitiveness of locally-manufactured products.

Outgoing MAN Chair, Ogun State Branch, George Onafowakan, said most manufacturers relied on self-generated electricity because of unreliable public power supply, significantly increasing operational costs. 

He noted that high borrowing costs, rising logistics expenses and limited FX access continue to constrain investment and industrial expansion.

He warned that additional regulatory charges, including environmental compliance fees, water extraction levies and recycling licence fees, could discourage investment and put thousands of jobs at risk if they are not properly harmonised.

The State’s Commissioner for Industry, Trade and Investment, Adebola Sofela, who represented Gov. Dapo Abiodun, acknowledged the challenges confronting manufacturers and announced that the state government would harmonise all taxes and levies before the end of his administration.

He said a committee had been established to review sub-national taxes, while consultations with local government authorities would be strengthened to eliminate overlapping levies and improve ease of doing business.

Sofela added that the government would also review concerns over environmental regulations while maintaining standards that promote sustainable industrial development.

Director, Technical Services, Ministry of Finance, Basheer Abdulkadir, said the Federal Government was implementing fiscal and trade reforms aimed at reducing the cost of doing business, simplifying tax administration and creating a more predictable investment climate.

Abdulkadir explained that reforms such as the Nigeria Tax Act 2025 and the National Single Window Project are expected to reduce cargo clearance time, lower logistics costs and strengthen Nigeria’s competitiveness under the African Continental Free Trade Area (AfCFTA).

MAN President, Francis Meshioye, said that although recent economic reforms were designed to stabilise the economy, they had also increased production costs for manufacturers. He called for predictable fiscal policies, affordable electricity, improved infrastructure, access to low-interest financing and stronger protection against unfair imports to support industrial growth, boost exports and create more jobs.

Despite the challenges, manufacturers reaffirmed their commitment to expanding local sourcing of raw materials, investing in renewable energy and adopting modern technologies. They, however, stressed that sustained government policy support remains essential to building a resilient manufacturing sector, driving economic growth and enhancing Nigeria’s industrial competitiveness.

During the private session of the AGM, the Managing Director of Harvestfield Industries Limited, Martins Awofisayo, was elected Onafowakan’s successor.