Data released by the National Bureau of Statistics (NBS) reveals that manufacturers in Nigeria paid a substantial sum of N607 billion in taxes during the first half of 2023, marking a significant increase of 115 percent compared to the N192 billion recorded in the first quarter. This information was gathered from various Company Income Tax (CIT) and Value Added Tax (VAT) reports.
In the initial quarter of 2023, manufacturers contributed N62.9 billion as CIT and N129.2 billion as VAT. The second quarter saw a 17 percent growth in VAT payments, reaching N151.7 billion, while CIT payments surged to N262.7 billion. This cumulative data indicates that manufacturers paid a total of N607 billion in CIT and VAT in the first six months of the year.
The data further underscores that, in terms of VAT and CIT remittances in 2023, the manufacturing sector was the most heavily taxed sector in both the first and second quarters. Following closely were the financial services sector and Information Communication Technology.
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The Manufacturers Association of Nigeria (MAN) recently released its Manufacturers CEOs Confidence Index, highlighting 20 key macroeconomic issues affecting the manufacturing sector’s performance. Among these issues, the impact of multiple taxes, charges, and levies ranked third, following energy costs and the high cost of credit coupled with a shortage of loanable funds.
Manufacturers have voiced concerns over what they perceive as an aggressive tax regime imposed by the Federal Government, which they believe transfers the burden of the country’s N77 trillion debt onto the real sector. Segun Ajayi-Kadir, the Director-General of MAN, emphasized in an exclusive interview with The PUNCH that manufacturers continue to grapple with over-taxation, along with other factors hindering the industry’s growth.
