FG To Offer Tax Breaks To Companies Employing More Staff, Allowing Importation To Drive Down Prices

Wale Edun

“The inflation reduction act will contain a range of import duties, exemptions, lowering of tariffs, and outright tax breaks for employment. If you employ more people, you will be given a tax break against it,” Edun said.

Federal Government of Nigeria plans to grant tax breaks to companies that employ more staff and suspend import duties on certain goods to combat rising inflation.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this announcement during an exclusive interview on AIT’s Money Line.

The measures are part of the Inflation Reduction Act, which will be signed by the President in a matter of weeks. Edun explained that the act aims to reduce the cost of production for businesses, which has increased due to the weakness of the exchange rate and other policies introduced by the current administration.

Also, the federal government spends around $600 million monthly on petrol imports, with neighboring countries and Central Africa benefiting from Nigeria’s fuel imports.

To address food affordability, the government is working to ensure homegrown food availability and has opened a window for importation to drive down prices and make food available immediately.

Edun assured that importation would not undermine local farmers, as it would only be allowed after exhausting local supplies.
The government aims to reduce inflation, stabilise exchange rates, and lower interest rates, creating a conducive environment for investment and job creation.