Tax Advisors in Ogun State: Manufacturing-Focused Tax Advisory

An outdated capital allowance schedule costs you real money, every single year it stays wrong.

Ogun is Nigeria’s densest manufacturing corridor outside Lagos. That concentration changes the tax profile: heavy fixed asset bases make capital allowance claims materially significant to your CIT liability, multinational-linked manufacturers need transfer pricing documentation FIRS can request at any time, and factory-scale payrolls need a PAYE process built for volume. Get any of these wrong and it isn’t a paperwork issue, it’s cash leaving your business every filing cycle.

Matthew Ogagavworia & Co. (Chartered Accountants), led by an FCA with over 25 years in practice, advises manufacturers across Agbara, Sagamu, and Ota on capital allowances, transfer pricing, and factory-scale PAYE. Given the proximity to our Alausa, Ikeja office, we run this as a near-daily working relationship, not an occasional check-in.

A capital allowance schedule is one of the few places in Nigerian tax law where getting the mechanics right has a direct, compounding effect on cash. An outdated schedule doesn’t cost you once, it costs you every year it stays wrong, because the understated claim rolls forward into every subsequent CIT computation. We treat the annual schedule review as a standing part of every manufacturing engagement, not an occasional audit finding.

Where Manufacturers Lose Money on Tax

Three mechanics drive almost every tax exposure we find in Ogun State manufacturing clients:

These three mechanics compound each other. A manufacturer with an outdated capital allowance schedule and undocumented transfer pricing arrangements isn’t carrying two separate risks, they’re carrying one combined exposure that a FIRS audit will treat as a single credibility question about the company’s overall tax discipline. Fixing one without the other leaves the file half-corrected.

Consider a mid-sized FMCG plant in Agbara that installed a new production line three years ago, added a second shift eighteen months later, and sources a portion of its raw material through its parent company abroad. The capital allowance schedule was never updated for the new line. The management fee paid to the parent has never had formal transfer pricing documentation prepared. And the second shift’s payroll is still processed on the same spreadsheet built for a single-shift operation five years ago. None of these three gaps was created deliberately, each is simply what happens when a growing operation outpaces the administrative processes built around it. But a FIRS auditor reviewing the file sees three separate red flags pointing the same direction, and that pattern is what turns a routine review into a full-scope audit.

Who This Is For

We advise three types of Ogun State manufacturer most often:

Subsidiaries of multinational groups — with related-party raw material sourcing or management fee arrangements that need contemporaneous transfer pricing documentation FIRS can request at any time.

Independently owned mid-sized factories — carrying a growing fixed asset base where the capital allowance schedule hasn’t kept pace with equipment purchases and disposals.

Manufacturers scaling their workforce — who need a factory-scale PAYE process built for shift differentials and multi-site remittance, not a spreadsheet designed for a small office team.

Why Choose Us

Manufacturing-specific expertise. Capital allowances, transfer pricing, and factory-scale PAYE, handled by a team that understands industrial operations, not just general commerce.

Close enough to be genuinely responsive. Agbara, Sagamu, and Ota sit close enough to Lagos for a near-daily relationship, not an occasional visit scheduled weeks in advance.

Consistency across services. Your tax position, audited accounts, and corporate records stay consistent because the same team handles all three, rather than three separate advisers working from different information.

Our Process

1. Fixed asset and documentation review — your capital allowance schedule checked against your actual register; related-party transactions identified and assessed for transfer pricing exposure.
2. Correction and documentation — the schedule rebuilt, transfer pricing documentation prepared for related-party arrangements before FIRS asks for it.
3. PAYE system setup — a factory-scale payroll process built around your shift structure, with OGIRS remittance built in from the start.
4. Ongoing compliance — monthly PAYE and VAT filings, annual CIT computation, OGIRS returns filed on schedule.
5. Audit readiness — documentation maintained as standing practice, support in FIRS or OGIRS correspondence whenever it’s needed.

Related Services

Ogun State tax advisory rarely stands alone. These services connect most often to the work above:

Audit Services — statutory audit for manufacturers above the CAMA 2020 threshold, coordinated with your tax position so both stay consistent.

Company Secretarial Services — for manufacturers managing group structures, board resolutions, and CAC filings across multiple related entities.

Financial Modelling and Valuation — for manufacturers assessing expansion, new equipment financing, or group restructuring.

Pricing

We price Ogun State manufacturing engagements by scope, not a flat published rate, because a small factory and a multinational subsidiary carry very different levels of tax complexity. Fee drivers typically include:

• The size and complexity of your fixed asset base
• Whether transfer pricing documentation is required for related-party transactions
• The size and shift structure of your factory workforce
• Whether this is a one-time correction or ongoing monthly compliance

You receive a written engagement letter with the fee, scope, and timeline agreed before any work begins. No engagement proceeds on a verbal estimate.

Frequently Asked Questions

Do all manufacturers need transfer pricing documentation?

Only where related-party transactions exist, typically raw material sourcing or management fees paid to a parent or group entity. We assess whether this applies to you first.

How often should our capital allowance schedule be updated?

Every year, as equipment is added or retired. An outdated schedule is one of the most common reasons manufacturers overstate their CIT liability.

Can you set up PAYE for a multi-shift factory workforce?

Yes. We build the payroll process around your shift structure and factory scale, with OGIRS remittance built in rather than handled separately.

How does import duty affect our tax computation?

Duty paid on imported raw materials and components should be captured in cost of sales, which affects your CIT computation. We check whether this is being done consistently.

Do you visit our Agbara, Sagamu, or Ota facility?

Yes, we combine remote document review with scheduled visits, given the proximity to our Lagos office.

We import machinery components through Lagos ports. Should customs duty appear anywhere other than cost of sales?

Generally no. Duty on components that become part of your production cost should sit in cost of sales, not be expensed separately. We check this treatment as part of every engagement, since it’s a common source of understated cost of sales and overstated CIT liability.

Our parent company charges us a management fee. Is that automatically deductible?

Not automatically. FIRS expects contemporaneous transfer pricing documentation supporting that the fee reflects an arm’s-length arrangement. Without it, the deduction is vulnerable to disallowance on audit.

How is tax advisory different from the audit you’d do for our company?

Tax advisory focuses on your FIRS and OGIRS position specifically, while audit provides an independent opinion on your full financial statements. Many of our manufacturing clients use both services from the same team so the two stay consistent.

We’re a smaller factory, not a multinational subsidiary. Does transfer pricing documentation still matter to us?

If you have no related-party transactions, transfer pricing documentation does not apply to you. We confirm this at the outset rather than assuming every Ogun State manufacturer needs it, so you are not paying for documentation you don’t require.

Can you help us decide whether to lease or buy new production equipment, from a tax perspective?

Yes. The capital allowance treatment differs between leased and owned equipment, and we can model both scenarios against your specific tax position before you commit to either route.

Our factory expanded to a second shift last year. Should our PAYE process have changed at that point?

Almost certainly, yes. Shift differentials, overtime calculation, and the sheer increase in transaction volume usually outgrow a spreadsheet built for a single-shift operation well before anyone notices. We assess whether your current process is still fit for purpose as part of the initial review.

How long does it take to prepare transfer pricing documentation from scratch?

Typically four to six weeks for a first-time engagement, depending on how many related-party transaction categories you have and how readily your parent company can supply the supporting information we need.

Do you work directly with our parent company’s finance team abroad, or only with the Nigerian entity?

Both, where necessary. Transfer pricing documentation often requires information only the parent company holds, such as their own cost basis for goods or services charged to the Nigerian subsidiary, so we coordinate with whichever team holds the relevant records.

Can you support us through an actual OGIRS or FIRS field audit, not just prepare documentation in advance?

Yes. We attend or coordinate directly with the field audit team, present the documentation we’ve prepared, and respond to follow-up requests on your behalf, so your production and finance staff aren’t pulled off their normal work to manage the audit alone.

Our factory is planning a major expansion. Should tax planning happen before or after construction starts?

Before, wherever possible. Capital allowance treatment, VAT recovery on construction costs, and any related-party financing arrangements are all easier and cheaper to structure correctly upfront than to correct after the fact once the expenditure has already been committed.

What Happens After You Reach Out

1. A confidential call — to understand your fixed asset base, your group structure if any, and your current payroll setup, so we know exactly what to review first.
2. A written engagement letter — with the fee, scope, and timeline for the capital allowance review, transfer pricing documentation, or ongoing compliance work agreed before anything begins.
3. A named point of contact — who reviews your schedule, corrects what needs correcting, and stays available for scheduled visits to your Agbara, Sagamu, or Ota facility.

Common Compliance Mistakes to Avoid

Across Ogun State’s manufacturing base, these are the recurring mistakes that carry the highest cost when FIRS eventually reviews the file:

• Letting the capital allowance schedule fall years behind the actual fixed asset register, understating a claim that has a direct, material effect on CIT
• Assuming a related-party management fee is automatically deductible without the transfer pricing documentation FIRS requires to support it
• Running factory payroll on a spreadsheet never designed for shift differentials, overtime, and multi-site PAYE remittance at volume
• Expensing import duty inconsistently instead of capturing it properly in cost of sales, distorting the CIT computation
• Building transfer pricing documentation only after an audit notice arrives, when the standard expectation is that it exists as a matter of ongoing practice

Client Testimonials

We’re building a published set of client references for our Ogun State manufacturing tax practice. Rather than publish quotes you can’t verify, we’ll introduce you directly to a comparable client, with their permission, once we understand your situation. Ask for a reference call as part of your consultation.

Not Sure Your Capital Allowance Schedule Is Accurate?

That gap usually costs more than a review would, and it compounds every year it stays wrong. Scope your review now, before the next CIT computation carries the same understated claim forward.

Tel: (+234) 802 320 0801, (+234) 807 576 5799

Email: enquiry@mocaccountants.com

Office: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria