The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has affirmed that better days are ahead for Nigerian manufacturers under the federal government ‘s New Tax Laws.
Oyedele addressed the manufacturers recently at a forum organised by the Manufacturers Association of Nigeria (MAN), themed, “From Legislative Assembly to Factory Floor: What the New Tax Laws Mean for Nigerian Manufacturers.”
Oyedele acknowledged that under the old tax regime , manufacturers grappled with multiple taxation, high tax burdens and VAT compliance challenges, the new tax reforms aim to fix that and support manufacturing.
He emphasised that the new tax reforms were designed to make Nigeria’s tax system fairer and simpler, particularly for productive sectors such as manufacturing, to make them more competitive both domestically and globally.
Photo: Manufacturers at the stakeholders engagement. Credit: Taiwo Oyedele/X
“Manufacturers stand to gain from expanded input VAT claims on assets and services, revised income bands, higher exemption thresholds, and a range of reliefs and allowances aimed at reducing effective tax burdens,” he said.
“The reforms also introduce mechanisms such as a tax ombudsman and withholding tax exemptions targeted at manufacturers and small businesses, measures intended to ease compliance pressures and resolve disputes more efficiently.
Other changes to support manufacturing include: Zero-rated supplies (0%) include fertilizers, locally produced agricultural chemicals, veterinary medicine, and animal feeds.”
In his remarks, Director-General of MAN, Segun Ajayi-Kadir, said the success of the reforms depend on full alignment by sub-national governments.
“We are happy that at least 10 states have passed laws fully aligned with the federal framework.
This will help eliminate nuisance taxes and illegal collection practices that have long been the bane of manufacturers.
“Now that states are passing these laws on their own, it bodes well for manufacturers and for the sustainability of the tax reform agenda,” he said
