Tax Reform: MAN Targets Multiple Taxation With Ombudsman Agreement
POLICY & INDUSTRY IMPACT ANGLE
MAN Seeks Structured Redress for Manufacturers
THE Manufacturers Association of Nigeria (MAN) has announced plans to formalise a working agreement with the Nigeria Revenue Service Ombudsman aimed at resolving tax-related complaints affecting local manufacturers. The initiative is designed to provide manufacturers with an institutional channel for addressing disputes arising from tax administration under Nigeria’s evolving fiscal framework.
The Director-General of MAN, Segun Ajayi-Kadir, disclosed the plan during an interview in Lagos, describing it as a strategic step to ensure that manufacturers derive tangible benefits from the Federal Government’s newly introduced tax reforms.
According to Ajayi-Kadir, the proposed agreement would establish a dedicated complaint-handling mechanism through which tax issues affecting manufacturers would be escalated directly to the Ombudsman’s office, reducing friction between manufacturers and tax authorities.
Multiple Taxation as a Persistent Industry Burden
Ajayi-Kadir identified multiple taxation as one of the most persistent challenges confronting Nigerian manufacturers, noting that the issue has consistently ranked as the top concern in the Manufacturers CEO Confidence Index (MCCI) for at least three consecutive quarters.
He explained that manufacturers frequently face overlapping tax demands from federal, state and local authorities, a situation that increases operational costs, erodes competitiveness and discourages investment.
“Our interests were well recognised and addressed during the tax reform process,” Ajayi-Kadir said, adding that MAN had actively participated in consultations leading to the formulation of the new tax law.
Manufacturers’ Role in Shaping Tax Reform
Ajayi-Kadir stressed that manufacturers must now reap the rewards of their sustained engagement in the tax reform process. He revealed that MAN submitted over 60 detailed questions to the Presidential Committee on Fiscal Policy and Tax Reforms, many of which were streamlined and addressed during the drafting process.
He also pointed to the committee’s public engagement strategy, including the use of digital platforms, explanatory videos and dramatized content, as a deliberate effort to counter misinformation and build trust among taxpayers.
“Tax reform has already started. The issue is no longer whether we accept it or not, but how manufacturers can maximise its benefits,” he said.
Proposed Ombudsman Framework
As part of the planned agreement, MAN intends to designate a liaison officer within the association to coordinate all tax-related complaints from manufacturers. These cases would then be formally transmitted to the Ombudsman’s office for review and resolution.
Ajayi-Kadir said the Ombudsman, who is currently based in Lagos, has expressed readiness to work closely with MAN and assured the association of a cooperative relationship.
“This will ensure that manufacturers have a clear, predictable process for resolving tax disputes without intimidation or arbitrary enforcement,” he said.
Government’s Rationale for the Ombudsman Office
Speaking on the role of the tax Ombudsman, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the office was created to protect taxpayers, particularly small businesses, from procedural abuses.
Oyedele noted that many businesses lack the technical knowledge or financial capacity to engage lawyers and tax consultants when confronted with complex tax demands.
“Millions of business owners do not understand taxation, and they don’t need to be tax experts,” he said, adding that this knowledge gap has often left taxpayers vulnerable to coercion and informal payments.
Addressing Enforcement Abuses
Oyedele explained that under the new tax regime, the Ombudsman has the authority to intervene in cases involving procedural violations, including aggressive enforcement tactics.
“Nobody should threaten to seal your premises within 48 hours without due process,” he said, noting that the Ombudsman’s office would serve as a buffer between taxpayers and tax officials.
A Test Case for Tax Reform Credibility
The proposed MAN–Ombudsman pact is widely seen as a test of the Federal Government’s commitment to making tax reform business-friendly. For manufacturers already grappling with high energy costs, forex volatility and infrastructure deficits, the effectiveness of the Ombudsman mechanism may determine whether the reforms translate into real economic relief.
