Wale Edun: Nigeria allocates N1 trillion in manufacturing sector incentives

In another development, the Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, on Tuesday disclosed that the Federal Government has allocated N1 trillion for investment in the productive sector as part of incentives in the last year.

Edun was speaking at a meeting with the National Assembly Joint Finance Committee on the issue of a 50 percent tax on banks’ foreign exchange profits.

The panel’s public hearing on Tuesday was a continuation of deliberations on the draft bill amending the Finance Act 2024.

Also present at the meeting was the Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, who stated that the accelerated stabilization fund will focus, among other things, on a series of historic projects aimed at creating infrastructure that will make the sector more profitable.

The Minister, responding to requests from committee members that the manufacturing sector be recognised as a beneficiary of the proposed tax on banks’ foreign exchange profits (windfall profit tax), said issues relating to this sector had already been addressed.

He said: “N1 trillion has been released in incentives for the manufacturing sector to help it cope with the high cost of production.

“In addition, low-interest financing for the manufacturing sector is provided under the Accelerated Stabilization and Development Plan, which is a six-month plan of extraordinary economic, fiscal and corporate measures to assist the manufacturing sector in particular.”

In his address to a joint committee chaired by Senator Sani Musa (APC Niger East), Adedeji stated that the proposed one-time windfall tax is aimed at redistributing wealth, which he said will benefit various sectors.

He explained that the strategic programmes of the Tinubu government are aimed at revitalising the manufacturing sector.

According to the FIRS Chairman, “accelerated stabilization funds focused on helping the productive sector are already being distributed beyond older projects with the strategic objective of revitalizing and increasing the profitability of the sector.

“Some of these strategic projects that in terms of infrastructure would boost the sector include the Badagry-Sokoto Expressway which would enable travel from Badagry to Sokoto in 11 hours. Furthermore, the Lagos-Calabar Coastal Highway is another strategic road infrastructure project that will provide the required connectivity for the boost to the manufacturing sector.

“President Bola Tinubu’s plan for the economy, productive sector and development is overall very solid.”

However, they failed to agree on a percentage share of the one-off profit tax between the federal government and the banks as the minister, the FIRS chief and representatives of the Central Bank of Nigeria (CBN) governor were barred from the meeting.

Tinubu in the implementing bill submitted for approval to both houses of the National Assembly had proposed a 50 per cent sharing formula for both parties, which some members of the committee suggested for reconsideration.

Sunday Aborisad