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MAN warns new tax stamps will burden Nigerian manufacturers and undermine the 2025 Tax Act, urging the government to use digital systems instead.

The Manufacturers Association of Nigeria (MAN) has cautioned that the government’s plan to introduce tax stamps for excisable goods could erode the gains of the Nigeria Tax Act 2025 and impose fresh burdens on local industries. MAN Director-General Segun Ajayi-Kadir said while the Act harmonises taxes and simplifies compliance, tax stamps often add high costs, create operational bottlenecks, and deliver limited revenue. He warned that small and medium-sized manufacturers would be hit hardest, with higher consumer prices, greater illicit trade, and weaker competitiveness. MAN urged the government to strengthen existing digital systems, such as the Customs’ Automated Excise Register and FIRS e-invoicing, instead of adding extra costs. Separately, from January 2026, Nigerians working remotely for foreign companies will be required to pay income tax at progressive rates of up to 25%. A worker earning $2,000 monthly (₦2.98 million) would pay about 23% in tax, though deductions for pensions, health insurance, and rent apply. Relief will be granted if income is already taxed abroad, while penalties for non-compliance include fines of up to ₦1 million or three years in prison.