In a significant move to revitalise the manufacturing sector, the Federal Government of Nigeria has infused N1 trillion in palliatives over the past year.
This announcement was made by Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a recent public hearing on the Finance Act (Amendment) Bill 2024, organised by the National Assembly’s Joint Committee on Finance.
Key Highlights from the public hearing include; the government injection of N1 trillion worth of palliatives, significantly bolstering the sector’s viability and productivity. This initiative is already showing positive impacts, helping to revive a critical sector of the economy.
Also, Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, emphasised the importance of infrastructure development, including legacy projects such as the Badagry-Sokoto Highway and the Lagos-Calabar Coastal Highway.
These projects are expected to enhance connectivity, reduce travel times, and support the sector’s revitalisation.
More so, a proposed one-time windfall tax on banks’ foreign profits aims to redistribute wealth to benefit various sectors, including manufacturing was another key high point of the public hearing.
In that light, Honourable Minister assured that the manufacturing sector is already being supported through the palliative measures, addressing concerns about sector inclusion in these benefits.
It was also revealed that President Bola Tinubu has introduced strategic programs, such as the accelerated stabilization fund, to enhance the manufacturing sector’s infrastructure and vibrancy. These initiatives are part of a broader strategy to stimulate economic development.
Discussions are ongoing regarding the distribution of the windfall tax between the federal government and banks. President Tinubu has proposed a 50 percent sharing formula, though some committee members advocate for an upward review.
Mr. Edun and Mr. Adedeji underscored the government’s robust plans for the economy, focusing on the manufacturing sector through strategic funding and infrastructure projects. These efforts are part of a broader agenda to create a conducive environment for critical sectors, aiming for sustainable economic growth and development.
The ongoing discussions and proposals reflect the federal government’s commitment to fostering a thriving manufacturing sector, crucial for Nigeria’s long-term economic stability and growth.
