The Manufacturers Association of Nigeria (MAN) has cautioned against the proposed introduction of a Tax Stamp System on excisable products, warning that it could derail recent tax reforms and impose heavy costs on local businesses, particularly Small and Medium Industries (SMIs).
In a statement on Tuesday, MAN's Director General, Segun Ajayi-Kadir, said while the initiative is being considered as a tool to curb smuggling and counterfeiting, global evidence shows that tax stamps often result in high compliance costs, operational bottlenecks, and minimal revenue gains.
Ajayi-Kadir stressed that the measure risks reversing the relief granted under the Nigeria Tax Act 2025, which consolidated and simplified taxes to reduce the burden on businesses. "The introduction of tax stamps would amount to giving with one hand and taking back with the other," he warned, adding that SMIs would face disproportionate challenges that could weaken job creation and local manufacturing competitiveness.
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He noted that Nigeria has already invested in modern digital tools like the Nigeria Customs Service's Automated Excise Register System (ERS) and the Federal Inland Revenue Service's e-invoicing platform, which provide real-time visibility of excise operations without the need for additional stamp systems.
MAN further highlighted potential risks, including higher production costs, consumer price hikes, and increased vulnerability to illicit trade as buyers turn to cheaper alternatives. Such outcomes, it said, could harm both government revenue and the survival of legitimate SMEs.
Ajayi-Kadir concluded that instead of introducing new compliance layers, the government should strengthen existing digital systems and border controls to enhance transparency, safeguard consumer safety, and foster a business-friendly environment under the African Continental Free Trade Area (AfCFTA).
