News Investigators/ The Federal Government has unveiled measures aimed at driving economic growth by reducing corporate taxes, offering single-digit interest rates, and funding local manufacturing.
The minister of finance and coordinating minister of the economy, Wale Edun, who disclosed this on Thursday at Access Bank’s 2024 ‘Corporate Customer Forum in Lagos, said the government is committed to creating an enabling environment for the private sector through long-term low-interest 25 years mortgages and support for manufacturing.
Mr. Edun said the consumer credit schemes will facilitate the purchase of durable goods, thereby stimulating the manufacturing sector.
Adding that there is a plan to reduce corporate income tax, to free up capital for businesses and encourage investment.
Mr. Edun said the government will shift the tax burden to high-end consumption, increasing taxes on luxury goods while exempting essential items like food and pharmaceuticals from VAT.
This, according to the finance minister, will drive local production, create jobs, and stimulate demand across key sectors such as agriculture, health, power, and oil and gas.
The minister also acknowledged the role of SMEs in Nigeria’s economy, highlighting government interventions such as N50,000 grants for small businesses and 9 percent loans for larger SMEs.
He reiterated the government’s commitment to reducing production costs and boosting output as a means to fight inflation. With Nigeria’s population exceeding 220 million, Mr. Edun expressed optimism that increased production will meet local demand, strengthen the economy, and attract both domestic and foreign investment.
Africa’s richest man and Nigeria’s leading industrialist, Aliko Dangote praised the government’s efforts but stressed the need for stronger domestic investments.
Mr. Dangote harped on the need to support local industries to create jobs at home and reduce reliance on imports, noting that“no domestic investment, no foreign investment.”
He expressed concern about Nigeria’s current dependence on foreign goods, citing an example of biscuits being imported from China, which he described as “creating jobs in China and poverty here.”
Dangote further emphasized the importance of protecting local industries, particularly small and medium-scale enterprises (SMEs), from unfair competition with foreign manufacturers who benefit from subsidised loans.
He urged the government to continue its work in creating a “circular economy” where all sectors, from manufacturers to bankers, can benefit and ensure that local industries thrive.
The government’s economic strategy has been developed in consultation with key stakeholders, including the Manufacturers Association of Nigeria (MAN), the Nigerian Economic Summit Group (NESG), and state governments.
