The Manufacturers Association of Nigeria (MAN) is seeking tax rebates for companies that source at least 40% of raw materials domestically, BusinessDay reported Oct. 26, tying the proposed tax relief to demand for Nigerian inputs.
BusinessDay said the rebate would range from 10% to 15%. Its report did not explain what amount the percentages would apply to or how long the incentive would run. It also did not identify who would verify companies’ sourcing levels or say when the proposal could take effect.
The package includes a proposed National Value Chain Portal that would connect factories with vetted Nigerian small and midsize suppliers of raw materials and intermediate goods, the outlet reported. MAN also wants public procurement rules to require agencies to give locally made products preference, according to BusinessDay.
MAN called for a ₦1 trillion Manufacturing Stabilization Fund as well, BusinessDay reported. Qualifying firms could receive tax relief under the proposed rebate, while lower tax receipts could affect government revenue. The outlet gave no estimate of the potential fiscal effect.
MAN’s official programme lists its 54th annual general meeting in Lagos for Oct. 5-7, under a theme focused on using national industrial policy to position Nigeria as an African industrial hub. A Federal Ministry of Information report says the meeting was held Oct. 7.
BusinessDay quoted MAN Director General Segun Ajayi-Kadir as saying that “no nation prospers on consumption alone.”
