The Manufacturers Association of Nigeria (MAN) has called for the establishment of a joint task force involving the association, the police and the Lagos State Traffic Management Authority (LASTMA) to stop illegal levies imposed on manufacturers in Lagos.
The MAN president, Francis Meshioye, made the call at the 55th Annual General Meeting of the association’s Apapa Branch in Lagos.
Meshioye said manufacturers operating in Apapa were facing multiple taxes and levies imposed by government agencies and non-state actors, particularly along industrial and port access roads.
He said the illegal collections were increasing the cost of moving raw materials and finished products, thereby adding to the already high cost of operating factories.
“In Apapa, taxation comes from everywhere. A truck moving raw materials from the port to Amuwo can be stopped by multiple agencies before it gets to the factory gate.
“That is in addition to corporate tax, Value Added Tax (VAT) and state levies,” he said.
Meshioye urged the Lagos State Government to enforce a “No-Tout Zone” policy in industrial areas to prevent unauthorised collections and protect manufacturers from harassment.
He also called for safeguards against illegal levies in Amuwo, Kirikiri and other major port access roads.
According to him, the government should introduce a single bill covering port-related charges to eliminate multiple payments imposed on the movement of containers.
He urged the Lagos State Government to collaborate with the Nigerian Ports Authority and the Nigerian Shippers’ Council to develop the arrangement.
Meshioye said the success of the proposed reforms should be measured by their ability to encourage business expansion, attract investment and create employment.
He also proposed the establishment of an Apapa Trade Corridor Authority to coordinate roads, drainage, security and regulation across Apapa, Amuwo and Kirikiri.
The proposed authority, he said, would help reduce duplication among government agencies and improve the business environment along the major industrial and port corridors.
The Chairman of MAN Apapa Branch, Raphael Danilola, said manufacturers were also contending with multiple taxation, regulatory burdens, insecurity, high energy costs, expensive credit and port charges.
Danilola urged the Lagos State Government to rehabilitate the Amuwo-Odofin drainage and road networks and take stronger action against extortion by non-state actors.
He also called for a review of the mandates of state agencies to eliminate overlapping responsibilities and reduce unnecessary regulatory demands on businesses.
“Ultimately, our concern is simple: how do we ensure that tax reform strengthens manufacturing competitiveness rather than adds another layer of pressure on businesses already operating in a challenging environment?” he said.
The Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, said the new tax administration framework had reduced more than 100 taxes to nine unified revenue heads at the sub-national level.
He said the nine revenue heads covered income tax, stamp duty, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily tickets.
Adesokan said the framework had also abolished revenue roadblocks along transportation corridors and prohibited cash payments for taxes.
He said anyone who mounted a revenue roadblock could face a penalty of up to N5 million or three years’ imprisonment, or both.
Unauthorised cash collection of taxes, he added, could attract a penalty of up to N2 million or three years’ imprisonment, or both.
He further said associations, unions and other non-state actors were prohibited from collecting taxes on behalf of government.
The MAN leadership said strict enforcement of the new rules would be necessary to prevent illegal collections and ensure that tax reforms reduce the cost of doing business for manufacturers.
