The federal government has announced plans to offer tax incentives to companies that increase their workforce. According to Finance Minister Wale Edun, these tax breaks will be included in the Inflation Reduction Act and will provide relief to businesses through tax deductions, credits, exemptions, or exclusions.
In an interview on AIT, Edun explained that companies that employ more staff will be eligible for tax breaks, which will be outlined in an executive order to be signed by the President. This move aims to mitigate the impact of rising operational costs, particularly for companies that import and process raw materials.
Additionally, Edun mentioned that the government will exempt certain items, including CNG and pharmaceutical products, from Value-Added Tax (VAT) through an executive order. He also announced the removal of withholding tax for manufacturing, small and medium-scale enterprises, food production, and food processing companies.
The minister expects the executive order to be issued within one to two weeks, pending regulatory and legal processes. This comes as Nigeria’s inflation rate surged to 34.19% in June 2024, prompting the Central Bank of Nigeria to increase the lending rate to 26.75% in July.
