Home Business News MAN seeks task force to tackle illegal levies on manufacturers

MAN seeks task force to tackle illegal levies on manufacturers

Key points

  • The Manufacturers Association of Nigeria (MAN) wants a joint task force involving the association, police and LASTMA to tackle illegal levies imposed on manufacturers.
  • MAN says multiple taxes, regulatory burdens, port charges and illegal collections along industrial corridors are increasing manufacturers’ operating costs.
  • The association says the new tax regime could improve manufacturing competitiveness if effectively implemented and supported by transparent compliance and dispute-resolution mechanisms.

Main story

The Manufacturers Association of Nigeria (MAN) has called for the establishment of a joint task force involving the association, police and the Lagos State Traffic Management Authority (LASTMA) to tackle illegal levies imposed on manufacturers operating in Lagos.

MAN President, Francis Meshioye, made the call at the 55th Annual General Meeting of the association’s Apapa Branch in Lagos, where he said manufacturers in the area continued to face multiple taxes and levies from government agencies and non-state actors.

Meshioye said the problem was particularly severe along industrial and port access roads, where illegal collections were adding to the cost of moving raw materials and goods between the ports and factories.

He said a truck transporting raw materials from the port to a factory in Amuwo could be stopped by several agencies before reaching its destination, in addition to the corporate tax, Value Added Tax (VAT) and state levies already paid by manufacturers.

According to him, the Lagos State Government should therefore enforce a “No-Tout Zone” policy across industrial areas and introduce safeguards against illegal collections in Amuwo, Kirikiri and other major port access roads.

Meshioye also called for a single bill covering port-related charges to eliminate multiple fees imposed on container movement, urging the Lagos State Government to work with the Nigerian Ports Authority and Nigerian Shippers’ Council to achieve the arrangement.

He said the success of such reforms should ultimately be measured by their ability to encourage business expansion, investment and employment in the manufacturing sector.

To improve coordination across the industrial corridor, Meshioye proposed the establishment of an Apapa Trade Corridor Authority to oversee roads, drainage, security and regulation across Apapa, Amuwo and Kirikiri.

The proposal comes as manufacturers in the Apapa industrial area continue to contend with several other operating challenges. Chairman of the MAN Apapa Branch, Raphael Danilola, identified multiple taxation, regulatory burdens, insecurity, high energy costs, expensive credit and port charges as major pressures on businesses.

Danilola specifically urged the Lagos State Government to rehabilitate the Amuwo-Odofin drainage and road networks, curb extortion by non-state actors and review the mandates of its agencies to eliminate duplication.

He said the focus should be on ensuring that tax reforms improve manufacturing competitiveness rather than create additional pressure for businesses already operating in a difficult environment.

The concerns raised by MAN came as the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, outlined changes under the new tax administration framework.

Adesokan said the framework had reduced more than 100 taxes to nine unified revenue heads at the sub-national level, covering income tax, stamp duty, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily tickets.

He said the framework also abolished revenue roadblocks along transportation corridors and prohibited cash payments for taxes, while associations, unions and other non-state actors were barred from collecting taxes on behalf of government.

According to Adesokan, offenders who mount revenue roadblocks could face penalties of up to N5 million or three years’ imprisonment, or both, while unauthorised cash tax collection could attract penalties of up to N2 million or three years’ imprisonment, or both.

The MAN Director-General, Segun Ajayi-Kadir, said the four new tax laws that came into effect on Jan. 1, 2026, could reposition the tax system to support productivity if properly implemented.

Ajayi-Kadir said manufacturers had previously faced between 120 and 160 taxes and levies, resulting in high compliance costs and uncertainty for businesses.

He said limiting the number of taxes and levies to nine under the new regime should simplify compliance and give manufacturers greater certainty in their operations.

However, he urged authorities to ensure that compliance remained simple and transparent, with effective mechanisms for resolving disputes between taxpayers and revenue authorities.

Ajayi-Kadir also called for an effective tax ombudsman system to provide manufacturers and other taxpayers with an impartial avenue for resolving disputes with revenue authorities.

The issues

The central concern for manufacturers is the cumulative cost of taxation, regulation and informal collections across the industrial and port corridors.

While the new tax framework seeks to simplify the number of taxes and levies, MAN says manufacturers still face illegal collections, duplicated regulatory functions, poor infrastructure, insecurity, high energy costs and expensive credit.

The challenge is therefore not only the number of taxes payable but also how revenue collection and regulation are enforced along major manufacturing and trade routes.

What’s being said

MAN says illegal levies and multiple collections are increasing manufacturers’ operating costs and undermining competitiveness.

The Joint Revenue Board says the new framework has reduced more than 100 taxes to nine unified revenue heads and introduced measures against revenue roadblocks and unauthorised cash collections.

MAN says effective implementation, transparency and an impartial dispute-resolution mechanism will be necessary for the reforms to deliver the intended benefits.

What’s next

MAN is seeking collaboration among the Lagos State Government, police, LASTMA, the Nigerian Ports Authority and Nigerian Shippers’ Council to address illegal collections and duplicated charges along industrial and port corridors.

The association is also pushing for an Apapa Trade Corridor Authority and a tax ombudsman system to improve coordination and resolve disputes between manufacturers and revenue authorities.

Bottom line

MAN wants tax reform to reduce, rather than add to, the cost of doing business for manufacturers.

While the new framework limits the number of taxes and levies, the association says tackling illegal collections, duplicated regulation, infrastructure deficiencies and other operating costs will be critical to improving manufacturing competitiveness.

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