Manufacturers Association Warns of New Tax Compliance Impact

The Manufacturers Association of Nigeria (MAN) has expressed concerns regarding the Nigeria Customs Service Excise Stamp Regulations, 2026, which introduce a hybrid system for tracking excisable products such as alcohol, tobacco, and sugar-sweetened beverages. MAN's Director General, Segun Ajayi Kadir, cautioned that the new tax compliance requirement could raise production costs for manufacturers without yielding significant revenue gains.

He highlighted that international experiences indicate tax stamps can lead to high compliance costs and operational challenges. The association urged the federal government to reconsider the introduction of the tax stamp system, suggesting that existing digital fiscal tools and improved border controls could enhance compliance without imposing additional costs on businesses.

The potential increase in legitimate product prices could drive consumers towards cheaper illicit alternatives, undermining the policy's objectives. The compliance burden may involve technology, staff training, and changes to production processes, which could further strain household budgets already affected by high living costs.