Finance and Coordinating Minister of the Economy, Wale Edun, announced yesterday that the Federal Government has injected N1 trillion in palliatives into the manufacturing sector over the past year.
Additionally, Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, stated that the accelerated stabilization fund, aimed at revitalizing the manufacturing sector, is being implemented alongside various legacy projects to enhance sector infrastructure.
The announcements were made during an interactive session on the Finance Act (Amendment) Bill 2024, organized by Senator Sani Musa (APC Niger East) and the National Assembly joint committee on Finance.
Responding to the committee’s request to consider the manufacturing sector for the proposed tax on bank foreign profits (windfall tax), Edun confirmed that the sector has already received substantial support. He said, “Palliatives worth N1 trillion have been injected into the manufacturing sector within the last year, yielding positive results in reinvigoration.”
FIRS Chairman Adedeji explained that the proposed one-time windfall tax is intended to redistribute wealth, benefiting various sectors. He emphasized that President Bola Tinubu’s strategic programs are focused on reinvigorating the manufacturing sector, with funds and projects aimed at making it more vibrant and viable.
Adedeji highlighted infrastructure projects like the Badagry-Sokoto Highway and the Lagos-Calabar Coastal Highway, which will enhance connectivity and support the sector’s growth. He affirmed, “President Bola Tinubu’s plans for the economy, manufacturing sector, and overall development are very robust.”
However, the sharing percentages of the one-time windfall tax between the federal government and banks were not finalized before the meeting concluded. President Tinubu had proposed a 50% sharing formula for both parties, but some committee members suggested an upward review.
