FG Injects N1trillion Palliatives into Manufacturing Sector, Finance Minister Says ..As FIRS boss links legacy projects to reinvigoration of the sector

By Iyojo Ameh

The Federal Government of Nigeria has allocated palliatives worth N1 trillion to the manufacturing sector over the past year, according to the Minister of Finance and Coordinating Minister of the Economy, Mr.

Speaking at a public hearing on the Finance Act (Amendment) Bill 2024, organized by the National Assembly’s joint committee on Finance, Edun emphasized the government’s commitment to bolstering the manufacturing industry.

He responded to committee members’ requests for the sector to benefit from the proposed tax on banks’ foreign profits, commonly referred to as the windfall tax, by affirming that the sector had already received substantial support.

“Palliatives worth N1 trillion have been injected into the manufacturing sector within the last year, with positive results in terms of its revitalization,” Edun stated.

At the same hearing, the Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, outlined the strategic initiatives of President Bola Tinubu’s administration to boost the manufacturing sector.

Adedeji highlighted the Accelerated Stabilization Fund, aimed at supporting the sector, alongside various legacy projects designed to enhance its viability and infrastructure.

Adedeji explained that the proposed one-time windfall tax is intended to redistribute wealth across different sectors, benefiting various industries. “Strategic programs under President Tinubu’s government are specifically targeted at reinvigorating the manufacturing sector,” he said.

Key infrastructural projects mentioned 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, enhancing connectivity and supporting the sector’s growth. “President Tinubu’s economic plan for the manufacturing sector and national development is very robust,” he added.

The committee members discussed the proposed 50% sharing formula for the one-time windfall tax between the federal government and banks, as suggested by President Tinubu’s executive bill.

However, 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 review of the sharing formula.