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FEC Proposes Ten Changes for Economic Advancement (Full List)

Published

3 months ago

Sep 25, 2024.

The Federal Executive Council (FEC) has given its approval for the Economic Stabilization Bills (ESB), marking a significant step in the government’s Accelerated Stability and Advancement Plan.

This decision was reached during the council’s 18th meeting, chaired by President Bola Tinubu at the Aso Chambers of the State House in Abuja.

The ESB, based on recommendations from the Presidential Fiscal Policy and Tax Reforms Committee led by Taiwo Oyedele, aims to amend over 15 tax, fiscal, and establishment laws. These proposed amendments are designed to foster economic stability throughout the country.

Key goals of the ESB include reducing inflation, strengthening the naira, enhancing job creation, and promoting fiscal discipline, all while addressing poverty alleviation.

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In a post on his X account on Tuesday, Oyedele outlined ten significant amendments proposed by the bills, highlighting their potential to stabilize Nigeria’s economy and establish a foundation for long-term inclusive growth. He underscored the importance of these reforms in shaping Nigeria’s fiscal future.

Here are the ten proposed changes:

Income Tax Law Amendments: To create employment opportunities for Nigerians in the global value chain, particularly in the digital economy.
Zero-rated VAT and Enhanced Incentives: To promote exports of goods, services, and intellectual property.
Gas Sector Investment Facilitation: To simplify local content requirements and enhance competitiveness in the gas sector.
Foreign Exchange Regime Reform: To strengthen the regulatory powers of the Central Bank of Nigeria (CBN), increase forex liquidity, fortify the naira, and maintain rates convergence.
Tax Relief for Employers: To provide tax reliefs for private sector employers regarding wage awards and transport subsidies for their employees.
Incentives for Employment Generation: To offer tax relief to companies that create incremental employment and retain those employees for at least three years.
Fiscal Discipline: To enhance remittances from government agencies and corporations to the Federal Government’s Consolidated Revenue Fund.
Collaboration with States: To suspend specific taxes on small businesses and vulnerable populations, including road haulage levies and other transportation-related charges.
Tax Identification Consolidation and Collaboration (TICC): To broaden the tax base and create a fair playing field for businesses.
Increased Funding for Student Loan Scheme: To provide additional resources for the Students Loan Scheme.