The Manufacturers Association of Nigeria (MAN) has cautioned the Federal Government against introducing a tax stamp system for excisable goods, warning that it could create high compliance costs, operational hurdles, and yield little additional revenue.
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MAN’s Director General, Segun Ajayi-Kadir, in a statement on Wednesday, said manufacturers welcomed the recently enacted Nigeria Tax Act 2025 for simplifying the tax framework and providing relief to industries. However, he argued that a tax stamp system would undermine the progress made by the new law.
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He explained that while the initiative is intended to curb smuggling, counterfeiting, and improve transparency, global experience shows such systems often fail to deliver results, instead piling more costs on businesses.
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Ajayi-Kadir highlighted concerns that the policy could fuel illicit trade, raise production costs that would be passed on to consumers, weaken Nigeria’s competitiveness under AfCFTA, and reduce consumer demand. He warned it could also increase the circulation of counterfeit goods while imposing heavy financial and operational burdens on manufacturers.
The MAN boss noted that government already has effective digital tools, including the B’Odogwu Automated Excise Register System of the Nigeria Customs Service and the Federal Inland Revenue Service’s e-invoicing platform, which provide real-time visibility of excise operations without the need for tax stamps.
He stressed that the proposed policy comes at a time when manufacturers are struggling with rising excise rates, high inflation, soaring energy costs, and poor power supply. Introducing tax stamps now, he said, could further threaten the survival of industries.
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