FEC Proposes Ten Changes To Encourage Economic Growth

The Federal Executive Council (FEC) has approved the Economic Stabilisation Bills (ESB), marking a significant step toward fostering economic growth in Nigeria.

These reforms, based on the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, align with the government’s Accelerated Stability and Advancement Plan.

President Bola Tinubu presided over the 18th meeting of the Federal Executive Council at the Aso Chambers of the State House, Abuja, where the ESB was approved.

The Economic Stabilisation Bills seek to amend more than 15 tax, fiscal, and establishment laws to enhance economic stability.

The proposed amendments aim to reduce inflation, strengthen the naira, and generate employment opportunities while promoting fiscal discipline and poverty alleviation—all critical for driving Nigeria’s economic growth.

Key Amendments for Economic Growth

The chair of the Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, shared the 10 key changes aimed at stabilizing Nigeria’s economy.

He noted that these reforms are designed to stimulate long-term economic growth and provide sustainable development for the country.

The proposed amendments include:

• 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.

These groundbreaking reforms are expected to create a conducive environment for economic growth and stability.

With FEC’s approval, the Economic Stabilisation Bills will now be transmitted to the National Assembly for enactment.

If passed, these laws will play a pivotal role in transforming Nigeria’s economic landscape, driving growth, and ensuring long-term sustainable development.

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