Manufacturers back tax reform bills, seek speedy passage

The Manufacturers Association of Nigeria (MAN) has expressed total support for the proposed tax reform bills and called on the National Assembly to expedite their passage.

The Bills transmitted by President Bola Tinubu to the National Assembly in October 2024 includes: The Nigeria Tax Bill, 2024; The Tax Administration Bill, 2024; The Nigeria Revenue Service Bill, 2024; and The Joint Revenue Service Board Bill, 2024.

Speaking at the second day of a public hearing on the bills, organised by the House of Representatives Committee on Finance on Thursday, Francis Meshioye, President of MAN, described the proposed laws as timely and necessary to address challenges such as multiple and excessive taxation, as well as arbitrary levies imposed by regulatory agencies.

“Our expectations for these bills are high, and we look forward to their expedited passage,” Meshioye stated.

He commended the proposed reduction in Company Income Tax (CIT) from the current 30% to 27.5% in 2025 and further down to 25% in 2027, describing it as a welcome relief for companies operating in Nigeria. He noted that the measure would ease the cost of doing business and improve the investment climate.

The MAN president also endorsed the bill’s provisions on free trade zones, which seek to bring clarity and ensure equity in tax obligations. He highlighted that under the proposed law, sales to the customs territory would be subject to taxation, including import duties, Value Added Tax (VAT), and Company Income Tax (CIT).

He argued that the proposed reform will ensure equitable tax treatment for companies operating both in the customs territory and in free zones, enabling fair competition while protecting Nigeria’s tax base.

He added that licensed entities would also benefit from incentives similar to those available to businesses within the customs territory, creating a win-win outcome. The reforms, he noted, align with global best practices for free zones.

Another key provision in the bills is the proposed increase in the CIT threshold from ₦25 million to ₦50 million, which Meshioye described as a significant benefit to manufacturers, particularly small and medium-sized enterprises.

He further urged lawmakers to retain the contentious tax supremacy clause, which he believes will curb the proliferation of multiple and excessive taxes.

“We urge the House of Representatives to consider the tax reform bills as a holistic package “, he urged.