Why FG injected N1trn palliatives into manufacturing sector – Finance Minister Edun

The Federal Government has disclosed that a total sum of N1 trillion was injected into the manufacturing sector as palliatives in 2023.

Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this statement in response to committee members’ questions about whether the manufacturing sector should benefit from the proposed windfall tax on banks’ foreign profits, stating that the sector has already received attention.

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

Also, the Chairman of the Federal Inland Revenue, FIRS, Mr. 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.

They both stated these on Tuesday during a public hearing on Finance Act (Amendment) Bill 2024, organized by the National Assembly Joint Committee on Finance.

Adedeji 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 chaired by Sen. Sani Musa, the Chairman of FIRS, Adedeji, said the proposed one-time windfall tax is geared towards the 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 the 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 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 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, for which some members of the committees suggested an upward review.