Finance Minister Wale Edun has announced a significant financial boost for Nigeria’s manufacturing sector, revealing that the President Bola Tinubu administration has injected N1 trillion in palliatives over the past year. This substantial investment aims to revitalize the sector, addressing concerns about its viability and growth.
During a public hearing on the Finance Act (Amendment) Bill 2024, Edun addressed inquiries from committee members about the sector’s inclusion in the proposed tax on banks’ foreign profits, known as the windfall tax. He emphasized that the manufacturing sector has already received considerable support, underscoring the administration’s commitment to its rejuvenation.
The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, elaborated on the ongoing efforts to stabilize and enhance the sector. He highlighted the accelerated stabilization funds and infrastructure projects designed to strengthen the manufacturing industry. These include major road projects like the Badagry-Sokoto Highway, which aims to shorten travel time between the two cities to 11 hours, and the Lagos-Calabar Coaster Highway, which is expected to improve connectivity and support manufacturing activities.
Adedeji also noted that the proposed windfall tax is intended to redistribute wealth, benefiting various sectors, including manufacturing. However, discussions on the allocation of tax revenues between the federal government and banks remain unresolved, with some committee members suggesting an increase in the proposed 50% sharing formula.
The Finance Minister and FIRS Chairman’s statements came as part of a broader review of the Finance Act’s impact on economic sectors. The administration’s robust strategy for economic and manufacturing sector development reflects President Tinubu’s focus on sustainable growth and infrastructure enhancement.
