Federal Executive Council Approves Groundbreaking Economic Stabilisation Bills
The Federal Executive Council (FEC) has approved the Economic Stabilisation Bills (ESB), a series of sweeping legislative amendments designed to bolster Nigeria’s economic recovery. The bills are rooted in the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee, chaired by renowned economist Taiwo Oyedele, and form a central pillar of the government’s Accelerated Stability and Advancement Plan.
The ESB proposes to amend over 15 tax, fiscal, and establishment laws, with an ambitious agenda aimed at reducing inflation, strengthening the naira, fostering job creation, and promoting fiscal discipline. If passed into law, these reforms could offer much-needed relief to Nigeria’s fragile economy, laying the groundwork for inclusive and sustainable growth.
On Tuesday night, Oyedele took to X (formerly Twitter) to outline ten key amendments within the ESB. These include significant reforms to income tax laws, a zero-rated VAT regime to stimulate exports, and incentives aimed at boosting the gas sector. Other highlights involve a restructuring of the foreign exchange regime, tax reliefs for employers, and initiatives to expand Nigeria’s tax base.
“These reforms are crucial for stabilising Nigeria’s economy and shaping a more prosperous future,” Oyedele noted, as he outlined the central changes designed to reposition the country’s fiscal landscape.
Key proposals include:
Amendments to Income Tax Laws: Targeting job creation in the global digital economy.
Zero-rated VAT: To promote exports of goods, services, and intellectual property.
Gas Sector Investment: Simplified regulations to increase competitiveness.
Forex Reforms: Enhancing CBN’s regulatory powers to boost liquidity and stabilise the naira.
Private Sector Tax Reliefs: Incentives for employers offering wage awards and transport subsidies.
Incremental Employment Tax Breaks: Reliefs for companies that retain new hires for three years.
Government Agency Remittances: Enhanced contributions to the Consolidated Revenue Fund.
Small Business Tax Relief: Suspension of certain state-level taxes for small enterprises and vulnerable groups.
Tax Identification Initiative: Expanding the tax base and levelling the playing field for businesses.
Student Loan Funding: Additional resources to support the scheme.
With FEC’s approval, the ESB will now be transmitted to the National Assembly for consideration. Should these reforms be enacted, they promise to play a pivotal role in stabilisingNigeria’s economy, while setting the stage for sustained growth and development.
