The multiplicity of taxes, levies, and fees are adversely
affecting the competitiveness of Nigeria's manufacturing sector, putting it at
a disadvantage in comparison to African counterparts, with corporate tax rates
being the highest in the world.
Over 30 different taxes, levies, and fees are charged by
various government agencies. This has led to small and medium-sized enterprises
losing about 9% of their total income annually to these charges.
Furthermore, the Nigerian Association of Chambers of
Commerce, Industry, Mines and Agriculture (NACCIMA) warns that further tax
increases may lead to shutting down many companies and worsen the already bad
unemployment crisis in the country.
The Corporate Tax rate in Nigeria is 30%, while the global
average is 23.37%. The way forward suggested by the Manufacturers Association
of Nigeria (MAN) is to reduce the multiplicity of taxes and ensure that only
approved taxes/levies/fees are charged, widen the tax net, and consider
reducing various tax rates.
Vanguard