Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has announced that the federal government is considering implementing tax incentives, including outright tax breaks, for companies that increase their workforce.

Additionally, the government plans to suspend import duties on specific goods to mitigate the rising inflation rate.

During an exclusive interview on AIT’s Money Line, Minister Edun revealed that these measures are part of the forthcoming Inflation Reduction Act, which is expected to be signed into law by the President within weeks.

The fiscal measures aim to alleviate the increased cost of production faced by businesses, largely due to the weakened exchange rate and other policy initiatives introduced by the current administration.

He said, “The inflation reduction act will now 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. So, a range of fiscal incentives will be laid out in an executive order which Mr. President will in due course sign.”

The Minister also revealed that the federal government spends around $600 million monthly on petrol imports. He mentioned that the high fuel import bill is attributed to neighbouring countries, extending to Central Africa, benefiting from Nigeria’s fuel imports.

Edun said there is a concerted effort to ensure homegrown food availability. According to him, in the short term, apart from distributing grains from the strategic reserves, a window has been opened for importation due to the President’s commitment to drive down prices and make food available immediately.

He assured everyone that this measure would not undermine local farmers, as importation would only be allowed after exhausting local supplies. Edun explained that one of the conditions for importation would be that all locally available produce in the markets or with millers has been utilized, with auditors in place to verify this.

He noted that these interventions aim to reduce inflation, stabilize exchange rates, and lower interest rates, thereby creating a conducive environment for investment and job creation.

However, the minister explained that they have not approached the central bank to request funds for paying government debts or salaries, known as Ways and Means. Instead, they have utilized market instruments to reduce what they owed, which is crucial for maintaining a strong economy.

He clarified that although the limit was raised to 10 per cent, it does not necessarily mean it will be used. This increase serves as a fail-safe, providing extra flexibility to cover payments if there is a timing gap between incoming revenue and expenses.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed that Nigeria currently incurs a monthly expenditure of $600 million on fuel importation.

According to Edun, the high import bill is attributed to the fact that neighboring countries, extending to Central Africa, benefit from Nigeria’s fuel imports.

During an interview on AIT’s Moneyline program, posted on the channel’s YouTube platform on Wednesday, Edun explained that this situation prompted President Bola Tinubu to remove fuel subsidies, as the exact amount of fuel consumed domestically remains unknown.

Citing a report by the National Bureau of Statistics, Edun noted that following the removal of fuel subsidies by President Tinubu on May 29 last year, Nigeria’s petrol importation has decreased to an average of one billion liters per month.

He said, “The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 per cent was only getting four per cent of the value, and basically, they were not benefitting at all. So it was going to be just a few.

“Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600m to import fuel every month but the issue here is that all the neighbouring countries are benefitting.

“So we are buying not for just for Nigeria, we are buying for countries to the east, almost as far as Central Africa. We are buying. We are buying for countries to the North and we are buying for countries to the West. And so we have to ask ourselves as Nigerians, how long do we want to do that for and that is the key issue regarding the issue of petroleum pricing.”

He added that the nation must take a decisive step to tackle step the problem as it impedes it’s economic growth.

Of great importance to the government, Edun said, is the welfare of the people, particularly the vulnerable.

One of the key areas of focus is ensuring food availability and affordability.

Speaking further in the interview, the finance minister clarified that the N570bn fund release to state governments was implemented last year December.

He said, “This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol but the point is that the states have received more money. They have received more money. Mr President has charged to ensure food production in the states.”

Edun also clarified that the recent decision to raise the maximum borrowing percentage in the Ways and Means from five to 10 per cent does not imply that the Federal Government tends to rely on the Central Bank of Nigeria financing.

He said the government had rather used market instruments to manage its debts.

The minister said, “We have not gone to the central bank to say, please lend the government money to pay its debt, to pay its salaries. That’s Ways and Means. We have not gone. In fact, we have used market instruments to pay down what we owed, and that is a very, very germane aspect of having a strong economy.

“It was raised to 10 per cent, but that doesn’t mean it will be used. It’s there as a fail-safe and just gives that extra flexibility so that if a payment needs to be made and there is a mistiming or gap in when revenue would come in and expenses, we can just draw it down briefly.”

He described the approval by the National Assembly as a fail-safe measure.

The minister added, “Sometimes it just gives that extra flexibility so that if a payment needs to be made and there’s a mistiming, there’s a gap between the time at which the revenue will come in and the expenses needed, you can just draw down briefly.

“So, the aim is to keep within the letter of the law, I think that’s the main point.”

He also said the welfare of Nigerians remained a key priority for the current administration, particularly ensuring food availability and affordability.

Edun said, “There is a concerted effort to ensure that we have homegrown food available. In the short term, apart from what is being distributed from reserves, there is a window that has been opened for importation because the commitment of Mr President is to drive down those prices now and make food available now.”

He assured all that the measure would not undermine local farmers, as importation would only be permitted after exhausting local supplies.

He said, “So, one of the conditions for this importation will be that everything available locally in the markets or with the millers and so forth has been taken up. We will have auditors that will check that.”

He said these interventions seek to reduce inflation, stabilise exchange rates, and lower interest rates, thereby creating a conducive environment for investment and job creation.

A Federal High Court in Lagos has issued a ruling ordering the Lagos State Government to conduct a comprehensive investigation into the circumstances surrounding the death of Pelumi Onifade, a 20-year-old journalist who was arrested by police during the 2020 #EndSARS protests and subsequently found deceased in a mortuary.

The court, presided over by Justice Ayokunle Olayinka Faji, also directed the government to convene a coroner’s inquest to ascertain the cause of death and identify those responsible for the young journalist’s tragic demise.

This ruling was made in response to a lawsuit filed by Media Rights Agenda (MRA) against the police and the state government.

According to a statement released by Idowu Adewale, Communications Officer for MRA, the court’s judgment marks a significant step towards accountability and justice for Pelumi Onifade’s untimely death.

Justice Faji, the statement said, agreed that the government’s Chief Law Officer “cannot just conduct an inquest without a duplicate of the case-file” but he ruled that Section 74 of the Administration of Criminal Justice Law of Lagos State gives the Attorney-General the power to request a case file from the Commissioner of Police.”

Although the court dismissed five of the claims made by the MRA against the police on the grounds that there was no evidence before the court to support them, Justice Faji noted that none of the facts in the MRA’s affidavit was denied by the Attorney-General who only raised an issue of law, adding that in the course of oral arguments, the latter’s counsel also undertook to conduct an inquest.

A Lagos-based lawyer, Mr. Charles Musa, filed an originating summons on August 4, 2021, on behalf of the MRA, against the Lagos State Commissioner of Police, the Inspector-General of Police and the Attorney-General of Lagos State.

In the suit, the MRA asked the court to declare that Onifade’s shooting in Oko Oba in the Agege Local Government Area of Lagos State, by agents of the COP and the IGP on October 24, 2020, in the course of his journalistic work, is unconstitutional and a gross violation of his fundamental rights as guaranteed by Section 33 of the 1999 Constitution (as amended) and Article 4 of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act (Cap A9) Laws of the Federation of Nigeria, 2004;

“Mr. Onifade’s arrest and unlawful or restriction of his liberty by agents of the COP and the IGP on October 24, 2020, in the course of his journalistic work is unconstitutional and a gross violation of his fundamental rights as guaranteed by Sections 35, 39 and 46(1) of the 1999 Constitution and Articles 5 and9 of the African Charter;

“The constitutional and statutory duties of the respondents do not extend to unlawful detention of innocent individuals who have not been charged to Court or found guilty of any offence by a competent court of law in Nigeria; and the COP and the IGP have an obligation to investigate crimes committed against Mr. Onifade, a journalist exercising his right to freedom of expression as guaranteed under Sections 33 and 39 of the Constitution and Articles 4 and 9 of the African Charter.

“The MRA also asked the court to issue three orders, directing the respondents to launch a transparent, impartial and independent investigation into the circumstances of the death of Onifade whose body was found in a morgue in Lagos; directing them to conduct a coroner’s inquest to ascertain the cause of his death; and directing them to identify and prosecute those responsible for his death,” the statement added.

In his judgment, Justice Faji pointed out that although the Commissioner of Police and the Inspector General of Police were served with the originating summons and other processes in the suit, they did not file any response.

He noted that the MRA’s Programme Officer, Mr. John Gbadamosi, who deposed to the affidavit in support of the suit, did not witness any of the facts relevant to the matter, adding that there was also no documentation in support of the claim that Onifade’s corpse was deposited in a mortuary.

Justice Faji also observed that although there was a constant reference in the affidavit to the family of the deceased who, he said, would have the necessary information regarding their various interactions with the police, none of them filed any evidence in support of the incident.  He therefore dismissed the claims against the police for lack of evidence.

Although the judge commended the Office of the Attorney-General of Lagos State for upholding the duties of the office by attending court and assisting the court in the matter, he noted that the explanation by the Attorney-General’s lawyer that the reason a coroner’s inquest was not conducted was because the duplicate of the case file was not forwarded to his office.

According to him, in response to the court’s question on what the Attorney-General did about the matter since being served with the court processes, the lawyer submitted that the Attorney-General is ready to conduct an inquest.

“Justice Faji stressed that the Attorney-General is not alleged to have known about the alleged unlawful killing of Mr. Onifade and is also not accused of being involved in the killing but that as stated by MRA, he has a duty to conduct an inquest into the circumstances of the death.

“He said indeed, in paragraph 15 of the counter­ affidavit, the 3rd respondent (the Attorney-General) has stated that he would prosecute anyone found to have a prima facie case established against him”.

“Justice Faji therefore directed the Attorney-General to take all necessary steps to see to the investigation of the circumstances of the death of Mr.  Onifade and to conduct a coroner’s inquest to ascertain the cause of the death as well as identify and prosecute those responsible for his death,” the statement concluded.