Nigerian Government Injects N1 Trillion into Manufacturing Sector as Palliatives

In a major boost to the country’s manufacturing sector, the Nigerian government has injected a total sum of N1 trillion as palliatives over the last year, according to Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The move is part of the government’s efforts to revitalize the sector and create a more conducive business environment.

Edun made the disclosure during a public hearing on the Finance Act (Amendment) Bill 2024, organized by the National Assembly joint committee on Finance. He noted that the sector has already been taken care of, and the proposed tax on banks’ foreign profits (windfall tax) is geared towards redistribution of wealth, which would be beneficial to various sectors.

Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, also stated that the accelerated stabilization funds, which focus on reinvigorating the manufacturing sector, are being injected alongside a series of legacy projects aimed at putting in place infrastructure to make the sector more viable.

According to Adedeji, some of the strategic projects that would reinvigorate the sector include the Badagry-Sokoto Highway, which would reduce the journey time from Badagry to Sokoto to 11 hours, and the Lagos-Calabar Coaster Highway, which would enhance connectivity for the manufacturing sector.

The government’s plan to revitalize the economy, manufacturing sector, and development is robust, according to Adedeji. However, the sharing percentage from the one-time windfall tax between the federal government and the banks was not agreed upon before the meeting was adjourned.

President Bola Tinubu had previously proposed a 50% sharing formula for both parties, which some members of the committees suggested reviewing upwards. The exact agreement on the sharing percentage remains pending.