*Says this will reduce impact of inflation on ordinary
Nigerians
*N15 trn infrastructure company in the offing
*As Osinbajo explains reduction of import duties on cars, says govt
will buy locally assembled vehicles
President Muhammadu Buhari on Monday said his administration has
set plans to exempt minimum wage earners from Personal Income Tax
as a means of insulating the Nigerian masses against rising
inflation.
![image](/2020/11/NWLR-1.jpg")
The President made these disclosures in his speech delivered
virtually by Vice President Yemi Osinbajo, SAN, on Monday at the
opening session of the 26th Nigerian Economic Summit Group
Conference themed: “Building Partnerships for Resilience”.
The President said this is one of the proposals in the 2020
Finance Bill, adding that it would help in stimulating the economy,
along with other plans proposed or already being implemented.
When coupled with other items in the proposed Bill, and various
economic policies of the Federal Government, these incentives would
ensure the resilience of the Nigerian economy to exogenous shocks,
according to President Muhammadu Buhari.
According to a statement issued by Senior Special Assistant to
the President on Media and Publicity, Office of the Vice President,
Mr. Laolu Akande, Buhari said “we are proposing in the new Finance
Act that those who earn minimum wage should be exempted from paying
income tax.
“These provisions which complement the tax breaks given to small
businesses last year will not only further stimulate the economy,
but are also a fulfilment of promises made to take steps to help
reduce the cost of transportation and the impact of inflation on
ordinary Nigerians.”
Explaining the role of the private sector in building a
resilient economy, President Buhari said “this government has
always emphasized that the private sector has a key role to play in
our efforts to build a more resilient and competitive economy as
expressed in the Economic Recovery and Growth Plan.
“Private companies in design, construction, logistics and
finance are very much engaged in our infrastructural projects in
power and rail as well as road and bridges and the installation of
broadband infrastructure which is an essential requirement if
Nigeria is to participate actively and benefit from the 4th
Industrial Revolution.”
Continuing, the President added, “…it is clear that we must
diversify the economy away from dependence on crude oil exports,
speed up human capital development and improve on infrastructure.
Above all, our economy must be made more resilient to exogenous
shocks. It is important for the private sector to play a key role
as we work together to identify national priorities and try to
influence our future national trajectory.”
The President also gave insights to the collaboration between
the CBN, the Nigerian Sovereign Wealth Investment Authority (NSIA)
and other stakeholders in the creation of an Infrastructure Company
(Infraco) Fund to address some of the nation’s critical
infrastructure needs.
“It goes without saying that partnerships remain essential to
attract the resources for building a solid national infrastructural
base. I am pleased to inform you in this regard that we are working
actively with the Central Bank, Nigerian Sovereign Investment
Authority and state governments under the auspices of the National
Economic Council to design and put in place a N15 trillion Infraco
Fund which will be independently managed.
“The Infraco Fund will help to close the national
infrastructural gap and provide a firm basis for increasing
national economic productivity and growth,” the President
explained.
Restating the commitment of his administration to sustaining
collaborations with the private sector in addressing challenges,
President Buhari said “if there is one single lesson to be learnt
from the COVID-19 pandemic, it is that partnerships are essential
for credible responses with lasting effects.”
His words: “Our national journey to economic prosperity is a
long one, so we must all certainly work together. As we saw,
partnerships were essential when we were faced with the serious
challenge of combatting COVID-19.
“We saw the key role that partnerships played in our national
effort to combat the COVID-19 crisis. While Federal and State
Governments worked together to manage the health response and
ensure the establishment of isolation centres and availability of
test kits, personal protective equipment, and medicines, the
private sector also played an active role as individual entities,
and also worked together in groups like the Coalition Against
COVID-19.”
During the speech presentation, the Vice President responded to
the issue of import duties raised by some speakers at the summit.
The Vice President noted that “the point of the reduction in levies
on motor vehicles, commercial vehicles for transportation is to
reduce the cost of transportation by reducing the cost of
vehicles.”
He explained that “with subsidy removal and the increase in fuel
price and the pass-through to food prices, transportation costs had
to be reduced. Now the automotive policy is directed at localizing
the production of vehicles. So the logic was increase the duty and
levies so that local production becomes more competitive. But the
annual demand for vehicles is about 720, 000 vehicles per year.
Actual local production is 14,000 vehicles a year.
“So, the problem is that at current rate of production, we will
not meet the serious national needs and this will just mean higher
prices of vehicles and greater strain on other sectors of the
economy that depend on transportation. But we are not giving up on
the local auto industry.
“Two important things to note; the first is that we still have
relatively high duty at 35%, so there is still a disincentive for
importation. Second is that we are promoting policy that the
government must buy only locally manufactured cars.”
The opening session of the summit featured presentations by
speakers including Chairman of the Nigerian Governors Forum and
Governor of Ekiti State, Mr Kayode Fayemi; Governor Aminu Bello
Tambuwal of Sokoto State; Chief Executive Officer of MainOne, Ms
Funke Opeke; and the Chief Executive Officer of GIG Group, Mr Chidi
Ajaere; among others.
*Says this will reduce impact of inflation on ordinary
Nigerians
*N15 trn infrastructure company in the offing
*As Osinbajo explains reduction of import duties on cars, says govt
will buy locally assembled vehicles
President Muhammadu Buhari on Monday said his administration has
set plans to exempt minimum wage earners from Personal Income Tax
as a means of insulating the Nigerian masses against rising
inflation.
The President made these disclosures in his speech delivered
virtually by Vice President Yemi Osinbajo, SAN, on Monday at the
opening session of the 26th Nigerian Economic Summit Group
Conference themed: “Building Partnerships for Resilience”.
The President said this is one of the proposals in the 2020
Finance Bill, adding that it would help in stimulating the economy,
along with other plans proposed or already being implemented.
When coupled with other items in the proposed Bill, and various
economic policies of the Federal Government, these incentives would
ensure the resilience of the Nigerian economy to exogenous shocks,
according to President Muhammadu Buhari.
According to a statement issued by Senior Special Assistant to
the President on Media and Publicity, Office of the Vice President,
Mr. Laolu Akande, Buhari said “we are proposing in the new Finance
Act that those who earn minimum wage should be exempted from paying
income tax.
“These provisions which complement the tax breaks given to small
businesses last year will not only further stimulate the economy,
but are also a fulfilment of promises made to take steps to help
reduce the cost of transportation and the impact of inflation on
ordinary Nigerians.”
Explaining the role of the private sector in building a
resilient economy, President Buhari said “this government has
always emphasized that the private sector has a key role to play in
our efforts to build a more resilient and competitive economy as
expressed in the Economic Recovery and Growth Plan.
“Private companies in design, construction, logistics and
finance are very much engaged in our infrastructural projects in
power and rail as well as road and bridges and the installation of
broadband infrastructure which is an essential requirement if
Nigeria is to participate actively and benefit from the 4th
Industrial Revolution.”
Continuing, the President added, “…it is clear that we must
diversify the economy away from dependence on crude oil exports,
speed up human capital development and improve on infrastructure.
Above all, our economy must be made more resilient to exogenous
shocks. It is important for the private sector to play a key role
as we work together to identify national priorities and try to
influence our future national trajectory.”
The President also gave insights to the collaboration between
the CBN, the Nigerian Sovereign Wealth Investment Authority (NSIA)
and other stakeholders in the creation of an Infrastructure Company
(Infraco) Fund to address some of the nation’s critical
infrastructure needs.
“It goes without saying that partnerships remain essential to
attract the resources for building a solid national infrastructural
base. I am pleased to inform you in this regard that we are working
actively with the Central Bank, Nigerian Sovereign Investment
Authority and state governments under the auspices of the National
Economic Council to design and put in place a N15 trillion Infraco
Fund which will be independently managed.
“The Infraco Fund will help to close the national
infrastructural gap and provide a firm basis for increasing
national economic productivity and growth,” the President
explained.
Restating the commitment of his administration to sustaining
collaborations with the private sector in addressing challenges,
President Buhari said “if there is one single lesson to be learnt
from the COVID-19 pandemic, it is that partnerships are essential
for credible responses with lasting effects.”
His words: “Our national journey to economic prosperity is a
long one, so we must all certainly work together. As we saw,
partnerships were essential when we were faced with the serious
challenge of combatting COVID-19.
“We saw the key role that partnerships played in our national
effort to combat the COVID-19 crisis. While Federal and State
Governments worked together to manage the health response and
ensure the establishment of isolation centres and availability of
test kits, personal protective equipment, and medicines, the
private sector also played an active role as individual entities,
and also worked together in groups like the Coalition Against
COVID-19.”
During the speech presentation, the Vice President responded to
the issue of import duties raised by some speakers at the summit.
The Vice President noted that “the point of the reduction in levies
on motor vehicles, commercial vehicles for transportation is to
reduce the cost of transportation by reducing the cost of
vehicles.”
He explained that “with subsidy removal and the increase in fuel
price and the pass-through to food prices, transportation costs had
to be reduced. Now the automotive policy is directed at localizing
the production of vehicles. So the logic was increase the duty and
levies so that local production becomes more competitive. But the
annual demand for vehicles is about 720, 000 vehicles per year.
Actual local production is 14,000 vehicles a year.
“So, the problem is that at current rate of production, we will
not meet the serious national needs and this will just mean higher
prices of vehicles and greater strain on other sectors of the
economy that depend on transportation. But we are not giving up on
the local auto industry.
“Two important things to note; the first is that we still have
relatively high duty at 35%, so there is still a disincentive for
importation. Second is that we are promoting policy that the
government must buy only locally manufactured cars.”
The opening session of the summit featured presentations by
speakers including Chairman of the Nigerian Governors Forum and
Governor of Ekiti State, Mr Kayode Fayemi; Governor Aminu Bello
Tambuwal of Sokoto State; Chief Executive Officer of MainOne, Ms
Funke Opeke; and the Chief Executive Officer of GIG Group, Mr Chidi
Ajaere; among others.