The Manufacturers Association of Nigeria (MAN) has cautioned the Federal Government against the planned introduction of a Tax Stamp System on excisable products, warning that the policy would worsen inflation, harm consumers, and contradict the Nigeria Tax Act 2025.
In a statement on Monday, the Director-General of MAN, Segun Ajayi-Kadir, said although the association supports efforts to modernise tax administration, the proposed tax stamp would “claw back the reliefs” granted under the 2025 Tax Act and amount to a hidden tax on industries.
Ajayi-Kadir explained that the system would increase compliance costs for producers and importers, who would eventually pass the burden to consumers. According to him, this would not only raise the cost of goods but also worsen Nigeria’s already high inflation rate.
He said, “The introduction of a tax stamp system amounts to giving with one hand and taking back with the other. It would impose a hidden tax on industries under the guise of compliance, with small and medium-sized industries bearing disproportionate burdens.”
The MAN boss noted that the proposal could also push households to buy cheaper illicit products, thereby undermining the competitiveness of Nigerian manufacturers within the African Continental Free Trade Area (AfCFTA).
Citing international experience, Ajayi-Kadir pointed to studies in Ghana and Uganda which showed that tax stamp systems imposed significant cost burdens but delivered little in terms of curbing illicit trade.
He added that paper-based tax stamps are often falsified, making it hard for retailers and consumers to know which goods are genuine. On the other hand, digital stamps, he said, tend to reduce productivity by up to 40 per cent without addressing illicit trade.
Ajayi-Kadir stressed that Nigeria already has existing home-grown digital tools that provide real-time visibility of excise operations. These include the Customs’ B’Odogwu Automated Excise Register System and the Federal Inland Revenue Service’s e-invoicing platform. “These tools already give the government the visibility that tax stamps claim to provide, without adding redundant layers,” he said.
According to MAN, the planned policy would undermine government’s efforts to support local manufacturers, attract new investments, and create jobs. The association warned that the move could result in several risks such as increased circulation of counterfeit goods, reduced consumer demand, job losses, and a slowdown in new investment in the sector.
Ajayi-Kadir added, “At a time when operators are grappling with rising excise rates, high energy prices, inadequate power supply, and high inflation, the additional burden of implementing tax stamps is a serious threat to industrial sustainability.”
The association called on the Federal Government to suspend any plan to introduce tax stamps “in whatever guise or form” until a full stakeholder engagement and impact assessment are carried out.
Instead of rolling out a new system, MAN advised the government to focus on strengthening existing digital fiscal tools and border enforcement. It also recommended cost-effective alternatives such as targeted audits and risk-based compliance checks, which it said would achieve better results without stifling manufacturers.
Ajayi-Kadir concluded that tax stamps often hinder local industries, erode progress made in tax simplification, and offer limited benefits to government revenue. He urged the government to prioritise industrial growth and consumer welfare by avoiding policies that could worsen the challenges faced by manufacturers and households.
