Manufacturers Association of Nigeria (MAN) has expressed strong reservations about the proposed introduction of a Tax Stamp System for excisable goods in Nigeria.

So-called tax stamps are used to collect taxes and other fees and are usually issued by local or national governments.

MAN stated that the system would impose significant compliance costs, create operational bottlenecks, and yield limited incremental revenue.

Segun Ajayi-Kadir, director-general of MAN, acknowledged the Nigerian government’s commitment to modernising and harmonising tax administration through the Nigeria Tax Act 2025.

He highlighted that the act had received positive feedback from association members for simplifying the tax framework and offering substantial relief, particularly to small and medium-sized industries (SMIs).

However, he expressed the need for cautious consideration regarding the Tax Stamp System, stating, “While the intention to combat smuggling, counterfeiting, and enhance transparency is commendable, it’s crucial to examine the broader implications of such a proposal.”

Ajayi-Kadir recalled that the concept of tax stamps was previously suggested in 2018 but ultimately not adopted, and he hopes that this updated proposal would not lead to unintended consequences or undermine the progress made with the new tax act.

He pointed out that the act had already simplified taxation, providing necessary support to businesses, and introducing a tax stamp system could inadvertently add to the financial challenges faced by industries and complicate compliance.

MAN stated that imposing tax stamps could unintentionally encourage illicit trade, as the added costs might deter compliance and adversely affect both government revenue and legitimate businesses.

“We believe that producers and importers might increase prices to cover these compliance costs, putting additional strain on consumers and potentially driving them towards cheaper, illicit alternatives,” Ajayi-Kadir explained.

MAN also recognised the government’s investments in robust digital systems, such as the B’Odogwu Automated Excise Register System (ERS) by the Nigeria Customs Service and e-invoicing by the Federal Inland Revenue Service (FIRS), which already provide the transparency that the tax stamps intend to achieve without imposing further compliance burdens.

According to Ajayi-Kadir, as Nigerian manufacturers compete with imported goods in regional markets, the association emphasises that any additional costs from a tax stamp system could jeopardise the competitiveness of local products, especially in an environment where consumer demand is already affected by inflation.

This could lead to a shift in consumer preferences toward less expensive imports, posing challenges for local manufacturers.

“Research has shown that while tax stamp systems may superficially boost reported revenue, the compliance costs often outweigh their benefits. Historical data suggests that such systems can adversely impact small businesses’ profitability and tax compliance.”

Ajayi-Kadir referenced experiences in other African nations, including Kenya, Uganda, and Ghana, noting that tax stamps can be effective only under specific conditions where strong enforcement and government support are present. In many emerging markets, these systems can raise costs, shrink formal markets, and promote illicit alternatives.

MAN DG implored the government not to succumb to the proposal to introduce Tax Stamps; instead, the government should strengthen existing digital fiscal tools and border controls to achieve compliance without imposing undue burdens on industry.

Paga Group, a financial technology company, has expanded its operation in the United States, introducing digital banking services tailored for Africa’s diaspora.

Developed in partnership with a US-regulated bank, Paga’s new offering delivers fully regulated US bank accounts to Africans living in the US. Customers can open and manage their accounts with a valid form of identification and a US residential address, enabling seamless access to modern banking services without traditional barriers.

The initial rollout targets the Nigerian diaspora, representing the first phase of Paga’s global expansion strategy.

This initiative is designed to simplify cross-border finance, foster financial inclusion, and provide modern, customer-centric banking solutions for Africans worldwide.

“Millions of Africans abroad face unnecessary barriers to basic financial services. Opening a bank account, saving in a stable currency, or sending money home is often expensive, complicated, or out of reach. In the United States alone, over 4.5 million African immigrants navigate a system that was never designed for them. We are breaking down those barriers,” said Tayo Oviosu, founder and group CEO of Paga.

The Nigerian-born immigrant population in the US has more than doubled over the past two decades, growing at an average rate of 4.8% per year to reach 476,000 in 2023. Remittances to Nigeria reached approximately $21 billion in 2024, up from $19.5 billion in 2023, underscoring the significant economic role of diaspora communities.

Paga’s US accounts include both physical and virtual Visa debit cards, fully integrated with Apple Pay, Google Pay, and Plaid.

Customers can link their accounts to third-party applications such as Robinhood and Venmo, and send funds to both US and Nigerian bank accounts, with plans to expand transfers to additional countries.

Unlike traditional remittance products, Paga’s platform is built primarily for banking and payments, empowering Africans to participate fully in global commerce.

The initial rollout targets individuals living across multiple geographies—particularly Nigerians with ongoing ties to their home country—offering a single, integrated wallet for both local and international financial needs

Dr. Nneka Onyeali-Ikpe, managing director, Fidelity Bank Plc,  has reaffirmed the bank’s commitment to grow Nigeria’s non-oil exports.

Dr. Nneka Onyeali-Ikpe, managing director, Fidelity Bank Plc,

Onyeali-Ikpe, stated this on the heels of the outcome of the Fidelity Nigeria International Trade & Creative Connect (FNITCC) in Atlanta, Georgia, reflecting on the vision behind the initiative.

She noted that while Nigeria’s non-oil exports currently stand at under $5 billion annually, the potential is immense.

“At Fidelity Bank, we believe access to global markets is a pathway to shared prosperity. That belief inspired the creation of FNITCC.

“FNITCC 2025 demonstrated that when Nigerian innovation meets global opportunity, extraordinary outcomes follow. As Fidelity Bank continues to invest in platforms that amplify local talent and drive cross-border growth, the future of Nigerian enterprise shines brighter than ever,” she said.

Exhibitors also highlighted the power of community and resilience, recounting moments of spontaneous international deals and heartfelt support.

The Nuga Designs team expressed delight, describing the exhibition as a melting pot for Africa creatives.

“It was an honor to exhibit among such a vibrant community of creatives, entrepreneurs, and cultural ambassadors. We left FNITCC 2025 with new customers, meaningful connections, and a renewed sense of purpose. Well done to Fidelity Bank for championing Nigerian businesses and bridging global markets,” the team said.

One of the exhibitors testified to the transformation of her business during the exhibition.

“Last year, I was devastated when our goods didn’t arrive on time. But this year, even in my absence, my fellow AWE sisters stepped in. A surprise visit from a buyer led to an impromptu video-call deal that changed everything. FNITCC reminded me that connections often matter more than sales.”

Gratitude flowed freely for the Fidelity Bank team and the behind-the-scenes contributors who ensured the event’s success.

“On behalf of FSGF AFRICA LTD, I extend our deepest gratitude to Fidelity Bank for hosting such a wonderful event,” said another exhibitor. “To the Fidelity team—your warmth, professionalism, and commitment made this experience truly remarkable.”