The Federal Government of Nigeria has infused N1 trillion into the manufacturing sector over the past year to stimulate its revival, according to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. This announcement was made during a public hearing on the Finance Act (Amendment) Bill 2024, organized by the National Assembly’s Joint Committee on Finance.
Key Highlights from the Public Hearing
Palliatives for the Manufacturing Sector:
The government has injected N1 trillion worth of palliatives to rejuvenate the manufacturing sector.
The initiative is already showing positive impacts, bolstering the sector’s viability and productivity.
Infrastructure and Legacy Projects:
Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), emphasized the importance of legacy projects and infrastructure development in supporting the manufacturing sector.
Significant projects such as the Badagry-Sokoto Highway and the Lagos-Calabar Coastal Highway are expected to enhance connectivity and reduce travel times, thereby supporting the sector’s revitalization.
Taxation and Redistribution:
Windfall Tax Proposal: The proposed one-time windfall tax on banks’ foreign profits aims to redistribute wealth and benefit various sectors, including manufacturing.
Sector Inclusion: In response to a request for the manufacturing sector to benefit from this tax, Minister Edun assured that the sector is already being supported through the palliative measures.
Strategic Programs:
President Tinubu’s Initiatives: Strategic programs under President Bola Tinubu’s administration, such as the accelerated stabilization fund, are focused on enhancing the manufacturing sector’s infrastructure and vibrancy.
Sharing Formula Discussions:
Windfall Tax Distribution: Discussions are ongoing regarding the sharing percentage of the windfall tax between the federal government and banks. President Tinubu proposed a 50 percent sharing formula, though some committee members are advocating for an upward review.
Government’s Commitment to Economic Growth
Minister Edun and FIRS Chairman Adedeji highlighted the government’s robust plans for the economy, particularly the manufacturing sector, through strategic funding and infrastructure projects. These efforts are part of a broader agenda to rejuvenate the sector and stimulate economic development.
The ongoing discussions and proposals underscore the federal government’s commitment to creating a conducive environment for manufacturing and other critical sectors, aiming for sustainable economic growth and development.
