The Federal Executive Council (FEC), chaired by President Bola Tinubu, yesterday approved the Economic Stabilization Bill, a key legislative initiative aimed at enhancing Nigeria’s economic resilience and fostering growth. The bill, which will be transmitted to the National Assembly shortly, is expected to introduce significant amendments to the country’s financial and tax laws, while also providing a solid foundation for much-needed infrastructure development.
At the core of the Economic Stabilization Bill is a series of reforms designed to address some of the critical challenges facing Nigeria’s economy. Key among these reforms is an amendment to the Foreign Exchange Act, which will encourage the use of electronic transactions over cash-based payments. This shift is expected to increase liquidity and make foreign exchange transactions smoother and more accessible.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who briefed reporters at the State House in Abuja after the FEC meeting, emphasized that the bill grants the Central Bank of Nigeria (CBN) broader powers to attract international funds. These reforms are particularly aimed at facilitating foreign exchange remittances and enhancing Nigeria’s access to global financial markets.
According to Edun, “The bill contains provisions that will amend the Foreign Exchange Act to encourage the use of electronic means over cash transactions, thereby increasing liquidity. It also gives the Central Bank greater capacity to attract international funds for foreign exchange transactions and remittances to Nigeria.”
The Economic Stabilization Bill also proposes reforms to the Companies Income Tax Act, which will enable Nigerian professionals to provide services to foreign companies without requiring those companies to register in Nigeria. This is seen as a strategic move to create new employment opportunities, stimulate income growth, and foster entrepreneurship within the country.
“The bill will allow Nigerians with the requisite skills and expertise to stay in Nigeria while providing services to foreign companies. This eliminates the need for those companies to register in Nigeria and opens up new avenues for employment, income, and entrepreneurship,” Edun added.
In addition, the bill includes reforms to the Fiscal Responsibility Act, ensuring that government-owned enterprises will better manage their finances by sharing surpluses and establishing reserve funds to build on their revenues.
