By Nathaniel Zaccheaus, Abuja
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, yesterday said the Federal Government had injected funds worth N1trillion incentives into the manufacturing sector within the last year.
He spoke at a meeting with the National Assembly Joint Committee on Finance over the 50 per cent tax on banks’ foreign exchange windfall.
Yesterday’s public hearing of the panel was the continuation of the Finance Act (Amendment) Bill 2024, deliberations.
Also at the meeting, was the Chairman of the Federal Inland Revenue Service (FIRS) Mr Zacch Adedeji, who declared that the accelerated stabilisation fund focussed among others, a series of legacy projects, geared towards putting in place the infrastructure to make the sector more viable.
The Minister in his response to the request by members of the Committee that the Manufacturing sector should be considered as a beneficiary from the proposed tax on banks’ foreign exchange profits (windfall tax), said the sector had already been taken care of.
He said, “There is the expenditure of one trillion naira (N1trn) in terms of incentives to the manufacturing sector to help them with the high cost of production.
“In addition, under the Accelerated Stabilization and Advancement Plan, which is a six-month plan for emergency economic, fiscal, and corporate sectoral actions to help in particular, the manufacturing sector, there is low-interest funding coming for the manufacturing sector.”
In his presentation to the joint committee chaired by Senator Sani Musa (APC Niger-East), the Chairman of FIRS, Zacch Adedeji, said the proposed one-time windfall tax, is geared towards redistribution of wealth which according to him, would be beneficial to the various sectors.
He however explained to members of the joint committee that strategic programmes of President Bola Tinubu-led Federal Government were targeted at reinvigorating the manufacturing sector.
“Accelerated stabilization 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 reinvigoration of the manufacturing sector.
“The plan of President Bola Tinubu on the economy, manufacturing sector, and development generally is very robust,” he said.
Sharing percentage 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 the Central Bank of Nigeria (CBN), was excused from the meeting.
Tinubu had in an executive bill forwarded for approval by both chambers of the National Assembly, proposed a 50 per cent sharing formula for both parties, which some members of the committees, suggested for upward review.
