Nigeria and the United Arab Emirates (UAE) have been given the green light by the Federal Government to proceed with the ratification of the Investment Promotion and Protection (IPPA) agreements. During the meeting of the Federal Executive Council (FEC) led by President Bola Tinubu, Doris Uzoka-Anite, the minister of trade and investment, provided confirmation on this matter to the attending journalists. Uzoka-Anite states that upon receiving approval, the Federal Government will proceed to submit the IPPA agreements.
This submission, after it has already been signed, will be made to the National Assembly in order to be ratified. In accordance with the 2016 model, the minister expressed that her ministry now has the authority to utilize Article 26 of the aforementioned agreement. This provision grants the ministry the power to evaluate and modify specific aspects of the IPPA to ensure alignment with the present IPPA model being employed. As per the minister’s statement, there shall be a prompt beginning of the utilization of a particular clause.
Tinubu’s government to boost and safeguard domestic industries.
According to the Minister, this clause grants the ministry the power to make reassessment and modification of the sections that were initially deemed unfavourable. The minister highlighted the soaring expenses incurred by goods and services while addressing the exorbitant costs associated with conducting business in Nigeria. She further mentioned that the Federal Executive Council (FEC) engaged in extensive discussions to enhance the manufacturing sector’s performance. Their discussions centred on exploring avenues for enhancement of the commercial landscape to better serve the needs of manufacturers and industrialists.
In her observation, it was clear that the primary objective of the Tinubu government lay in boosting and safeguarding domestic industries and manufacturers. Consequently, it became imperative to undertake every essential measure in order to ensure elimination of any hindrance or detriment that may be obstructing or influencing the smooth operation of businesses. The continuous message from the president has consistently emphasized Nigeria’s welcoming stance towards business, with assurances that impediments have been completely removed.
Obstacles comprise of the burden of multiple taxes and levies.
Eradicating hindrances and already eliminated barriers is the current focus. These obstacles comprise of the burdensome burden of multiple taxes and levies, the imposition of customs duties and various charges on businesses, as well as the deterioration of infrastructure, notably in the power sector of the country. The minister reminded everyone that the president established two important councils: the Presidential Council on Industrial Revitalization and the Presidential Council on Fiscal Reform and Tax Policy Review.
Moreover, the minister emphasized that the president has instructed these councils to expedite their reports and reviews. The aim is for them to swiftly provide recommendations so that the rejuvenated agenda, known as the Renewed Hope, can promptly start making a tangible difference for both the citizens and the real sector. Established in October, the Industrial Rejuvenation Presidential Council emerged to reignite the nation’s economic potential. Conversely, the Fiscal Policy and Tax Review Presidential Council was formed in July 2023.
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The latter has its focus on strategic financial planning and tax assessment. Upon completion of the committee’s evaluation and subsequent publication of its findings, the FEC emphasized its plans to instigate innovative measures aimed at revitalizing the economy and propelling the country towards a remarkable economic growth rate. Envisioning the realization of His Excellency’s ambition to foster a $1 trillion economy, the FEC’s relentless efforts are expected to yield substantial results with the GDP registering a significant two-digit surge.