Government interventions such as the Naira-for-Crude initiative, the Nigeria Industrial Policy, withholding tax exemptions, expanded VAT deductibility on fixed assets and services, phased reductions in Companies Income Tax, tax incentives for research and development, and fiscal relief measures for small and medium industries, have been identified as some of the things that could revive the manufacturing sector if properly implemented.
This is according to the Manufacturers Association of Nigeria (MAN) has said that recently released three-year government assessment document.
MAN Director-General Segun Ajayi-Kadir lamented that manufacturers had borne the brunt of economic reforms introduced over the past three years.
The reforms, he noted, led to soaring production costs, declining capacity utilisation, reduced access to credit and significant job losses.
The reforms, he added, had laid the foundation for long-term economic restructuring but stressed that implementation must now focus on industrial recovery and growth.
“The Nigeria Industrial Policy and the renewed emphasis on local content procurement through the Nigeria First framework equally represent important steps toward strengthening domestic industrial capacity. If properly implemented and consistently enforced across all government institutions, these initiatives could significantly improve market access for locally manufactured goods, deepen local value addition and stimulate industrial expansion,” Ajayi-Kadir said.
He further stated that the implementation of the Naira-for-Crude initiative had reduced foreign exchange pressure within the downstream petrochemical and plastics value chain, while fiscal measures that zero-rated VAT and excise duties on pharmaceutical raw materials and medical devices had provided relief for local manufacturers.
He added that the 2025 Tax Reform Act introduced key provisions capable of improving the industrial climate, including withholding tax exemptions, expanded VAT deductibility on fixed assets and services, phased reductions in Companies Income Tax, incentives for research and development, and fiscal relief for small and medium-scale industries.
Ajayi-Kadir also stated that the ongoing harmonisation of levies across states could help reduce the burden of multiple taxation, while the National Single Window platform offers an opportunity to simplify trade procedures and improve supply chain efficiency.
