Experts seek tax holiday for manufacturers in construction sector, others

Experts have advocated tax holiday and other incentives for manufacturers in the construction sector and other key sectors of the economy in order to avoid a total collapse of the sector.

They made the call during a pre-summit webinar ahead of the 30th Nigerian Economic Summit, with the theme ‘Reversing the Decline: Strategies for Stabilising Nigeria’s Manufacturing Sector’.

In his submission, Chijioke Uwaegbute, Partner & Tax Leader at PwC Nigeria, said to stabilise the manufacturing industry, ‘There is a need for temporary freeze on increasing levies and tax rates for one to two years to help the sector recover as some manufacturers in the construction sector currently face tax rates as high as 45%.”

Also speaking, Dr Muda Yusuf, Thematic Lead of the manufacturing group, who represented Engr. Mansur Ahmed, Private Sector Co-Chair of the Manufacturing and Mining Policy Commission (MMPC) Steering Committee, noted that “Despite its potential, the manufacturing sector faces numerous challenges, such as inadequate infrastructure, fluctuating exchange rates, and poor access to finance. As such there is a need for incentives supported by innovation, infrastructure, and strong economic policies that ensure that the sector survives,”

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Also, Olakunle Alake, Vice President of Dangote Industries Limited and NESG Board member, said Nigeria’s manufacturing sector, which contributes only 8% to the GDP, faces stagnation due to issues like erratic power supply and inadequate infrastructure to ensure that the sector provides enough services to power high demand for the  construction industry.

He emphasised that prioritising Sustainable Development Goal (SDG) 9, which focuses on building resilient infrastructure and fostering innovation, is crucial for achieving broader economic and social goals.