The Senate has called on the Federal Government to impose a ban on the importation of all materials manufactured in Nigeria, accompanied by amendments to customs tariffs. This directive was issued during the Senate’s consideration of the report from the Joint Committee on Finance, Appropriations, National Planning, Local, and Foreign Debts on the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
The Senate further urged the Federal Government to refrain from granting tax waivers not directly linked to non-governmental/non-profit organizations. It recommended a thorough investigation into all tax waivers granted from 2015 to the present, emphasizing that such exemptions should only be approved under specific conditions to prevent misuse.
Speaking to the press, Senator Sani Musa, Chairman of the Joint Senate Committees on Finance, Appropriations, National Planning, and Foreign Debt, expressed concern about the significant revenue losses attributed to tax waivers. He emphasized the need to protect local manufacturers, accusing existing cartels of hindering Nigeria’s economic growth.
Senator Musa disclosed that the Customs informed the Senate of approximately N1.3 trillion lost to waivers, highlighting the economic illogic of granting waivers without tangible gains. The Senate’s call for the ban on imports aligns with its commitment to supporting domestic industries and curbing revenue leakage.
The report also revealed that President Bola Tinubu plans to borrow N7.8 trillion to fund the proposed N26 trillion budget for 2024. The budget allocates N8.2 trillion to debt services, projecting a reduction in inflation from 27.33 percent to 21.4 percent in 2024.
The breakdown of the budget includes N16.9 trillion in retained revenue, N243.6 billion for the sinking fund, N1.3 trillion for statutory transfers, and N1.2 trillion for pension gratuity and retirees’ benefits. The total recurrent (nondebt) expenditure is N10.2 trillion, with N4.49 trillion allocated for the personal cost of MDAs and N5.9 trillion for capital expenditure (exclusive of transfers).
The Senate’s recommendations underscore a strategic focus on revenue generation, fiscal discipline, and a concerted effort to fortify the nation’s economic framework in the coming years.
