The Manufacturers Association of Nigeria (MAN) has expressed concerns over the potential introduction of a Tax Stamp System for excisable goods in the country.

According to MAN, this system would impose heavy compliance costs, create operational bottlenecks, and yield limited incremental revenue.

MAN believes the Tax Stamp System would contradict the gains of the Nigeria Tax Act 2025, which simplified tax frameworks and delivered relief to industries, particularly small and medium-sized industries (SMIs).

The system would lead to increased costs for manufacturers, which would be passed on to consumers, potentially driving them towards cheaper, illicit alternatives.

MAN suggests leveraging existing digital systems, such as the Nigeria Customs Service’s Automated Excise Register System (ERS) and the Federal Inland Revenue Service’s (FIRS) e-invoicing system, which already provide end-to-end tracking and transparency.

MAN cites examples of countries like Kenya, Tanzania, and Uganda, where tax stamp systems have led to high compliance costs, operational strain on small and medium enterprises (SMEs), and reduced competitiveness.

MAN urges the government to reject any proposal to rollout or implement Excise Tax Stamps until a comprehensive stakeholder engagement process is undertaken and an inclusive impact assessment study is carried out.

MAN seeks to protect the gains of the 2025 Tax Reform Acts by avoiding measures that reintroduce complexity and costs, particularly for SMIs.

MAN suggests adopting smarter and more cost-effective alternatives, such as targeted border enforcement, digital traceability pilots, and risk-based audits, to strengthen tax compliance enforcement.