FG promises fiscal incentives for manufacturers, investment in infrastructure

President Muhammadu Buhari has said the Federal Government (FG) will continue to invest in infrastructure development. He also promised Nigerians access to low-cost funding while providing fiscal incentives to companies willing to manufacture in Nigeria.

He explained that the incentives include a three to five-year tax holiday for enterprises and industries; tax-free operations and capital allowances for agriculture, manufacturing and engineering within the nation’s free trade zones.

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The president was represented by the Minister of Industry, Trade and Investment, Niyi Adebayo, at the opening ceremony of the 2022 Lagos International Trade Fair. He stated that some of the programmes include Federal Government of Nigeria Special Intervention Fund for Micro Small and Medium Enterprises (MSMEs), the Anchor Borrowers’ Programme (ABP) and the N150bn targeted credit facility.

While speaking, he added that the public sector will continue to drive investment into infrastructure development. He also stated that access to low-cost financing and provide fiscal incentives to companies wishing to manufacture products for sale will be aided by the public sector’s investment drive.

He added that these incentives include: three to five-year tax holidays for enterprises; tax-free operations and capital allowances for agriculture, manufacturing and engineering within the free trade zones.

His speech

Meanwhile, he stated that to achieve economic development, the public and private sectors must work hand-in-hand.

“The private sector can help boost the demand for Nigerian products by aggressively pursuing value addition and increasing the quality of exported goods originating from our country. This trade fair is a great opportunity to showcase Nigeria’s capacity to produce to international standards and also to export,” he added.

However, he said the essence of trade themed “Connecting businesses, creating value” portrays the realisation of the action plan of the present administration.

“We all know the important role that trade plays in stimulating our economy and driving sustainable development. Through increased trade, our goals of job creation, GDP growth, increased foreign exchange earnings and reduced insecurity are actualised. The development of export trade takes this a step further and helps our nation reach its economic diversification goals,” he said.

Also speaking, the Governor, Lagos State, Babajide Sanwo-Olu, restated his administration’s commitment to prioritising the growth and development of MSME. He stated that prioritizing their growth will drive the economic growth and development of the state.

He promised that his government would continue to create policies that would deliberately ensure ease of doing business. The Governor said this is to enable the state attract investments and allow businesses to thrive.

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Earlier, the president, Lagos Chamber of Commerce and Industry (LCCI), Michael Olawale-Cole, said the economic conditions have been challenging even as the economy sustains recovery from the Covid-19 pandemic.

He noted that while the Nigerian economy has recorded some impressive growth figures this year showing a sustained recovery of the economy, there are heightening fears of recession, food insecurity and more climate change impacts.