Manufacturers pay N74.5bn in company income tax as reforms simplify compliance

This figure is a 30.98 percent decrease from the N107.90bn paid in Q1 2025, reflecting the impact of four new tax laws implemented on January 1, 2026. These reforms aim to balance increased tax compliance with stronger business protection. The Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, stated that the new framework fundamentally changes manufacturers' position, offering stronger safeguards and simplifying the tax system.

He urged manufacturers to maintain valid Tax Identification Numbers, accurate records, and use dispute resolution channels. The reforms consolidate over 100 taxes and levies into nine revenue heads at the sub-national level, prohibit cash payments for taxes, and ban collection by non-state actors. Penalties for violations include fines up to N5m or three years' imprisonment.

A tax refund mechanism and the Office of the Tax Ombud have also been introduced to address overpayments and review complaints. Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, noted that manufacturers previously faced 120 to 160 taxes and levies, which increased operating costs. He believes the new laws provide an opportunity to reposition taxation as a tool for economic growth, making compliance easier and providing certainty for businesses.