N1 trn injected into manufacturing sector in last one year – Finance Minister

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has disclosed that a total sum of N1 trillion was injected into the manufacturing sector as palliatives in the last year by the President Bola Tinubu administration.

The Minister said this while reacting to inquiries made by members of the committee that the manufacturing sector be considered as a beneficiary of the proposed tax on banks’ foreign profits (windfall tax), noting that the sector has already been taken care of.

Also, the Chairman of the Federal Inland Revenue, FIRS, Zacch Adedeji, said the accelerated stabilization funds which focus on reinvigorating the manufacturing sector are being injected, aside from a series of legacy projects, geared towards putting in place infrastructure to make the sector more viable.

The stakeholders stated these on Tuesday during a public hearing on Finance Act (Amendment) Bill 2024, organized by the National Assembly joint committee on Finance.

“Palliatives worth N1 trillion have been injected into the manufacturing sector within the last one year with attendant positive results in terms of reinvigoration”, he said

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Earlier in his presentation to the joint committee Chaired by Senator Sani Musa, 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 the strategic programmes of President Bola Tinubu led federal government, are 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, were excused from the meeting.

President Tinubu had in an executive bill forwarded for approval by both chambers of the National Assembly, proposed a 50% sharing formula for both parties, which some members of the committees suggested an upward review.