The Federal Executive Council (FEC) has approved the Economic Stabilisation Bills (ESB), a pivotal move in the government’s Accelerated Stability and Advancement Plan.
The decision was made on Monday during the 18th meeting of the council, presided over by President Bola Tinubu at the Aso Chambers of the State House in Abuja.
The ESB, driven by recommendations from the Presidential Fiscal Policy and Tax Reforms Committee chaired by Taiwo Oyedele, aims to amend over 15 tax, fiscal, and establishment laws.
These proposed changes are expected to significantly enhance economic stability across the nation.
Key objectives of the ESB include reducing inflation, strengthening the naira, boosting job creation, and promoting fiscal discipline while addressing poverty alleviation.
In a post on his X account on Tuesday, Oyedele outlined the ten key amendments proposed by the bills, emphasizing their potential to stabilize Nigeria’s economy and lay the groundwork for long-term inclusive growth.
He described these reforms as crucial for shaping the future of Nigeria’s fiscal landscape.
Here are the 10 proposed changes:
– Amendments to income tax laws to facilitate employment opportunities for Nigerians in the global value chain, including the digital economy.
– Zero-rated VAT and improved incentive regime to promote exports in goods, services, and intellectual property.
– Amendments to facilitate investment in the gas sector and simplify local content requirements to ensure competitiveness.
– Reform of the foreign exchange regime to enhance the regulatory powers of the CBN, unlock more forex liquidity, strengthen the naira, and sustain rates convergence.
– Tax reliefs for private sector employers in respect of wage awards and transport subsidies provided to their employees.
– Tax relief to companies that generate incremental employment and retain such employees for a minimum of three years.
– Fiscal discipline and enhancement of remittances from government agencies and corporations to the Consolidated Revenue Fund of the Federal Government.
– Collaboration with states to suspend certain taxes on small businesses and vulnerable populations, including road haulage levies and other charges on transportation of goods.
– Introduction of a “Tax Identification Consolidation and Collaboration (TICC)” initiative to expand the tax base and create a level playing field for businesses.
– Provision of additional funding for the Students Loan Scheme.