The Manufacturers Association of Nigeria has cautioned the Federal Government against the proposed introduction of a Tax Stamp System for excisable products, warning that the policy would increase production costs, harm consumers, and contravene the Nigeria Tax Act 2025.
In a statement by the Director-General of MAN, Segun Ajayi-Kadir, said the association appreciated the government’s drive to modernise tax administration, but the proposed measure “risks clawing back the reliefs granted under the 2025 Tax Act.”
Ajayi-Kadir 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.”
He stated that the measure would increase compliance costs that producers and importers would ultimately pass on to consumers, thereby worsening inflationary pressures.
Ajayi-Kadir observed that introducing a Tax Stamp System for excisable products could push households toward cheaper illicit products and erode the competitiveness of Nigerian manufacturers under the African Continental Free Trade Area.
DG noted that international experience had shown that tax stamps deliver limited revenue gains while creating heavy compliance and operational bottlenecks. He pointed to studies in Ghana and Uganda which found that stamp systems imposed significant cost burdens without curbing illicit trade.
Ajayi-Kadir stressed, “Paper-based tax stamps are prone to falsification, making it difficult for consumers and retailers to distinguish between genuine and counterfeit goods. Digital stamps, on the other hand, cut productivity by up to 40 per cent and have not reduced illicit trade.
He also argued that Nigeria already had home-grown digital tools such as the Customs’ B’Odogwu Automated Excise Register System and the Federal Inland Revenue Service’s e-invoicing platform, which provide real-time visibility of excise operations. “These tools already give the government the visibility that tax stamps claim to provide, without adding redundant layers,” he said.
MAN warned that introducing tax stamps would undermine the government’s efforts to promote local manufacturing and job creation. The association listed risks including increased circulation of counterfeit goods, reduced consumer demand, potential job losses, and deterrence of 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.”
He urged the government to reject any persuasion to roll out the system “in whatever guise or form” until a comprehensive stakeholder engagement and impact assessment were conducted.
Instead, MAN called on the government to strengthen existing digital fiscal tools and border enforcement, while adopting smarter, cost-effective alternatives such as targeted audits and risk-based compliance checks.
Ajayi-Kadir concluded, “Tax stamps often hinder local industry, erode gains in tax simplification, and yield limited revenue impact. The government should strengthen existing systems rather than impose undue burdens on manufacturers and consumers
