Effect of Tax Reforms on Manufacturing Sector Competitiveness in Katsina State

This study evaluates the effect of recent federal and state tax reforms on the competitiveness of the manufacturing sector in Katsina State, North West Nigeria. Katsina hosts a growing light manufacturing base, particularly in leather processing, textile weaving, and agricultural commodity processing. The Finance Acts enacted between 2019 and 2023 introduced significant changes to companies income tax rates, capital allowance computations, and minimum tax provisions, all of which affect manufacturing cost structures. A mixed-methods professional research design is employed, combining a quantitative survey of 80 manufacturing firms in Katsina with documentary analysis of tax policy change announcements and comparative competitiveness indicators. Survey data measure effective tax burdens, capital investment trends, and employment levels before and after key reform milestones. Multiple regression and thematic analysis are applied. The study expects to find that reductions in CIT rates for small manufacturers have had a modest positive effect on investment and employment, but that the benefit is partially offset by the increased compliance cost of adapting to successive legislative amendments. It also anticipates that firms in sectors without sector-specific incentives feel at a competitive disadvantage relative to counterparts in pioneer status industries. Recommendations include establishing a dedicated FIRS-Katsina State joint advisory service for manufacturers, simplifying capital allowance computation guidelines, and introducing a three-year transition window for new policy changes. Keywords: tax reform, manufacturing competitiveness, Katsina State, Finance Act, investment.