The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed to the Senate that the Federal Government has allocated palliatives worth N1 trillion to the manufacturing sector over the past year.
Added that endeavor is part of a broader initiative aimed at rejuvenating the sector.
During a public hearing on the Finance Act (Amendment) Bill 2024, organized by the National Assembly’s joint committee on Finance, Edun underscored the government’s dedication to strengthening the manufacturing industry.
In response to committee members’ inquiries regarding the sector’s eligibility to benefit from the proposed tax on banks’ foreign profits, known as the windfall tax, Edun affirmed that substantial support had already been provided to the sector.
Edun stated, “Palliatives worth N1 trillion have been infused into the manufacturing sector in the last year, yielding positive outcomes in terms of its revitalization.”
Meanwhile, at the same hearing, the Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, delineated President Bola Tinubu’s administration’s strategic initiatives to enhance the manufacturing sector.
Adedeji emphasized the Accelerated Stabilization Fund, which is designed to bolster the sector, along with various flagship projects aimed at improving its sustainability and infrastructure.
He elucidated that the proposed one-time windfall tax seeks to redistribute wealth among different sectors, benefiting a multitude of industries. Adedeji remarked, “President Tinubu’s government has strategically devised programs to rejuvenate the manufacturing sector.”
Key infrastructural projects highlighted by Adedeji include the Badagry-Sokoto Highway, which will reduce travel time from Badagry to Sokoto to 11 hours, and the Lagos-Calabar Coastal Highway, which will enhance connectivity and support the sector’s expansion. He further added, “President Tinubu’s economic blueprint for the manufacturing sector and national development is exceedingly robust.”
The committee deliberated on the suggested 50% sharing arrangement for the one-time windfall tax between the federal government and banks, as proposed in President Tinubu’s executive bill.
Nonetheless, a consensus on the sharing percentage was not reached before the Minister, the FIRS Chairman, and the Central Bank of Nigeria representative were excused from the meeting. Some committee members proposed an upward revision of the sharing formula.
