Manufacturers in Ogun State have called on the state government to harmonise taxes, levies and regulatory charges, warning that multiple taxation and rising compliance costs are making production more expensive and reducing the state’s attractiveness to investors.
The appeal was made during the 41st Annual General Meeting of the Ogun State branch of the Manufacturers Association of Nigeria, where industry leaders said businesses are facing mounting pressure from exchange rate volatility, inflation, high energy costs, expensive borrowing, foreign exchange constraints and an increasingly complex regulatory environment.
The association also urged the state government to restore its quarterly engagement forum with manufacturers, saying regular consultations would improve policy implementation and help resolve operational challenges affecting industries. Brandspur Brand News reports that manufacturers want greater collaboration before the introduction of new taxes, levies or regulations that could affect business operations.
The group expressed concern over rising electricity tariffs and unreliable public power supply, noting that many factories now rely heavily on self-generated electricity, significantly increasing production expenses. It also highlighted difficulties in accessing foreign exchange for the importation of raw materials, machinery and industrial equipment, which continue to affect manufacturing capacity.
Manufacturers further raised concerns over regulatory demands from environmental agencies, citing charges related to water extraction, recycling licences, air pollution compliance and other requirements they said have created uncertainty for businesses. They warned that enforcement actions, including factory closure threats, could disrupt production, threaten jobs and weaken investor confidence if regulatory agencies fail to coordinate their activities.
Despite the challenges, the association said manufacturers have continued investing in local sourcing, technology adoption, renewable energy and operational efficiency to sustain production. It maintained, however, that stronger government support and a more predictable policy environment are essential for long-term industrial growth.
Responding to the concerns, the Ogun State Government acknowledged the issues raised by manufacturers and said efforts are underway to improve the business climate through regulatory reforms and better coordination among government agencies. The administration also pledged to review concerns relating to multiple taxation and regulatory enforcement while maintaining a transparent framework that supports industrial development and private sector investment.
