Palliatives: FG injects N1trn into manufacturing sector — Minister
By Matthew Denis
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed yesterday that the Federal government has injected palliatives worth N1 trillion into the manufacturing sector within the last year.
Also, the Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, has declared that the accelerated stabilisation fund, which focuses on reinvigorating the manufacturing sector, is being injected aside from a series of legacy projects geared towards putting in place infrastructure to make the sector more viable.
The Minister and the FIRS boss spoke yesterday during an interactive session on Finance Act (Amendment) Bill 2024, organised by Senator Sani Musa (APC Niger East) and the National Assembly joint committee on Finance.
The Minister of Finance, who was responding to a request made by members of the Committee that the manufacturing sector should be considered a beneficiary of the proposed tax on bank foreign profits (windfall tax), said that the sector has already been taken care of.
Edun said, “Palliatives worth N1 trillion have been injected into the manufacturing sector within the last year, with attendant positive results in terms of reinvigoration.”
Earlier in his presentation to the joint committee, the Chairman of FIRS, Zacch Adedeji, said that the proposed one-time windfall tax was geared towards redistribution of wealth, which, according to him, would be beneficial to the various sectors.
Adedeji, who explained to members of the joint committee that strategic programmes of President Bola Tinibu-led federal government are targeted at reinvigorating the manufacturing sector, said, “Accelerated stabilisation funds focusing on helping the manufacturing sector are already being doled out aside legacy projects strategically targeted at making the sector more vibrant and viable.
“Some of these strategic projects that would, in terms of infrastructure, reinvigorate the sector, are the Badagry-Sokoto Highway, which would make the journey from Badagry to Sokoto 11 hours.
“Also, the Lagos-Calabar Coaster Highway is another strategic road infrastructural project that will bring about the required connectivity for reinvigorating the manufacturing sector.
“The plan of President Bola Tinubu on the economy, manufacturing sector, and development generally is very robust.”
The sharing of percentages from the one-time windfall tax between the federal government and the banks was, however, not agreed upon before the Minister, the FIRS boss, and a representative of the Governor of Central Bank of Nigeria (CBN) were excused from the meeting.
Recall that President Tinubu, in an executive bill forwarded for approval by both chambers of the National Assembly, proposed a 50 percent sharing formula for both parties, which some members of the committees suggested for upward review.
