Introduction of TSS’ll hinder local industry growth –MAN

Introduction of TSS’ll hinder local industry growth –MAN

The Manufacturers Association of Nigeria (MAN) has warned against the federal government’s proposed introduction of a Tax Stamp System (TSS) on excisable goods, arguing that it would harm local industries and reverse progress made in tax simplification.

According to MAN’s Director General, Segun Ajayi-Kadir, government support for TSS is based on expected benefits like curbing smuggling, counterfeiting, and improving revenue transparency. However, MAN insists that global evidence shows tax stamps often impose high compliance costs, operational difficulties, and deliver little additional revenue.

Ajayi-Kadir stressed that industries are already struggling with rising excise duties, high energy costs, power shortages, and inflation. Adding tax stamps, he said, would further threaten industrial sustainability. Instead, MAN recommended that government should rely on existing digital systems such as the Excise Reconciliation System (ERS) and e-invoicing, which already ensure transparency and product traceability without duplication or extra costs.

The association urged the government to avoid vendor-driven policies that complicate the new Nigeria Tax Act 2025, and instead pursue smarter, cost-effective alternatives—such as targeted border enforcement, digital traceability pilots, and risk-based audits—to improve compliance and combat smuggling.

In conclusion, MAN called on the government to shelve the TSS proposal until proper stakeholder consultations and impact assessments are conducted, stressing that protecting industries and ensuring a conducive business environment should remain a priority.