Presidential Committee on Fiscal Policy and Tax Reforms outlines reliefs aimed at lowering production costs and driving industrial growth
The Federal Government, through the Presidential Committee on Fiscal Policy and Tax Reforms, has outlined a range of incentives embedded in the new tax laws designed to stimulate growth in Nigeria’s manufacturing sector and strengthen the country’s industrial base. The reforms are aimed at reducing the cost of doing business, improving competitiveness, and attracting fresh domestic and foreign investment into manufacturing.
According to the committee, the new tax framework prioritises production-driven sectors by offering targeted reliefs that address long-standing challenges faced by manufacturers, including high operating costs, multiple taxation, and regulatory bottlenecks. The incentives are expected to support both large-scale manufacturers and small and medium-sized enterprises (SMEs), which play a critical role in job creation and economic diversification.
Key features of the new tax laws include tax credits and allowances for companies that invest in local production, machinery, and technology, as well as incentives for firms that expand capacity, adopt energy-efficient processes, or source raw materials locally. The reforms also provide for simplified tax compliance processes, reduced tax burdens on critical inputs, and clearer guidelines to eliminate overlaps between federal and subnational taxes.
The Presidential Committee noted that the measures are part of a broader strategy to reposition Nigeria as a manufacturing hub in Africa, reduce reliance on imports, and increase value-added exports. By easing fiscal pressure on manufacturers, the government aims to encourage reinvestment, improve productivity, and enhance the sector’s contribution to gross domestic product (GDP).
Stakeholders in the manufacturing industry have welcomed the focus on incentives, noting that predictable and supportive tax policies are essential for long-term planning and growth. As implementation of the new tax laws progresses, the government has assured manufacturers of continued engagement to ensure the reforms deliver tangible benefits and translate into sustained industrial development across the country.
Post a Comment