The Federal Executive Council (FEC) has approved the Economic Stabilisation Bills (ESB), a crucial step in the government’s Accelerated Stability and Advancement Plan.
This decision was made during the council’s 18th meeting on Monday, chaired by President Bola Tinubu at the Aso Chambers of the State House in Abuja.
The ESB, which stems from recommendations by the Presidential Fiscal Policy and Tax Reforms Committee led by Taiwo Oyedele, aims to amend over 15 tax, fiscal, and establishment laws. These amendments are anticipated to significantly boost economic stability throughout the country.
The key objectives of the ESB include reducing inflation, strengthening the naira, fostering job creation, promoting fiscal discipline, and addressing poverty alleviation. In a post on his X account on Tuesday, Oyedele highlighted the ten key amendments proposed in the bills, stressing their potential to stabilize Nigeria’s economy and lay the foundation for long-term inclusive growth. He described these reforms as vital for shaping Nigeria’s fiscal future.
Here are the 10 proposed changes:
Income Tax Amendments: Modifications to income tax laws to create employment opportunities for Nigerians within the global value chain, particularly in the digital economy.
Export Incentives: Implementation of zero-rated VAT and enhanced incentive regimes to promote exports of goods, services, and intellectual property.
Gas Sector Investments: Reforms to facilitate investments in the gas sector and simplify local content requirements for competitiveness.
Foreign Exchange Regulation: Reform of the foreign exchange regime to enhance the Central Bank of Nigeria’s regulatory powers, unlock additional forex liquidity, strengthen the naira, and ensure sustained rates convergence.
Tax Relief for Employers: Provision of tax relief for private sector employers regarding wage awards and transport subsidies provided to employees.
Incentives for Employment Growth: Tax relief for companies that create incremental employment and retain those employees for a minimum of three years.
Fiscal Discipline: Measures to ensure fiscal discipline and enhance remittances from government agencies and corporations to the Federal Government’s Consolidated Revenue Fund.
Support for Small Businesses: Collaboration with states to suspend certain taxes on small businesses and vulnerable populations, including road haulage levies and transportation charges for goods.
Tax Identification Initiative: Introduction of a “Tax Identification Consolidation and Collaboration (TICC)” initiative aimed at expanding the tax base and creating a level playing field for businesses.
Student Loan Scheme Funding: Provision of additional funding for the Students Loan Scheme.