This move is part of the government’s efforts to drive economic growth and create an enabling environment for the private sector.
According to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, the government plans to reduce corporate income tax, offer single-digit interest rates, and provide funding for local manufacturing. This will facilitate the purchase of durable goods, stimulate the manufacturing sector, and create jobs.
Some key initiatives include:
– *Reducing Corporate Taxes*: To free up capital for businesses and encourage investments
– *Single-Digit Interest Rates*: To support long-term low-interest rates and 25-year mortgages
– *Manufacturing Support*: To stimulate the manufacturing sector and create jobs
– *Consumer Credit Schemes*: To facilitate the purchase of durable goods
Additionally, the government plans to shift the tax burden to high-end consumption, increasing taxes on luxury goods while exempting essential items like food and pharmaceuticals from Value Added Tax (VAT).
These reforms are part of the government’s broader economic strategy, developed in consultation with key stakeholders, including the Manufacturers Association of Nigeria and the Nigerian Economic Summit Group.
