President Muhammadu Buhari has said that the proposed Finance Bill 2020 will exempt minimum wage earners in Nigeria from the Personal Income Tax in order to reduce the impact of inflation on Nigerians.
In his speech delivered virtually on his behalf on Monday, by Vice President Yemi Osinbajo, at the opening session of the 26th Nigerian Economic Summit Group Conference themed: “Building Partnerships for Resilience, Buhari said: “We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax.
“These provisions which complement the tax breaks given to small businesses last year will not only further stimulate the economy but are also a fulfillment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians.” Explaining the role of the private sector in building a resilient economy, President Buhari said “this government has always emphasized that the private sector has a key role to play in our efforts to build a more resilient and competitive economy as expressed in the Economic Recovery and Growth Plan. “Private companies in design, construction, logistics, and finance are very much engaged in our infrastructural projects in power and rail as well as road and bridges and the installation of broadband infrastructure which is an essential requirement if Nigeria is to participate actively and benefit from the 4th Industrial Revolution.”
According to the President, “it is clear that we must diversify the economy away from dependence on crude oil exports, speed up human capital development and improve on infrastructure. Above all, must be made more resilient to exogenous shocks. “It is important for the private sector to play a key role as we work together to identify national priorities and try to influence our future national trajectory.”
Buhari gave insights into the collaboration between the CBN, the Nigerian Sovereign Wealth Investment Authority (NSIA), and other stakeholders in the creation of an Infrastructure Company (Infraco) Fund to address some of the nation’s critical infrastructure needs.
He added: “It goes without saying that partnerships remain essential to attract the resources for building a solid national infrastructural base. I am pleased to inform you in this regard that we are working actively with the Central Bank, Nigerian Sovereign Investment Authority and State Governments under the auspices of the National Economic Council to design and put in place a N15 trillion Infraco Fund which will be independently managed.
“The Infraco Fund will help to close the national infrastructural gap and provide a firm basis for increasing national economic productivity and growth.”