The Federal Executive Council (FEC) has approved the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms in the economic stabilisation plan of the federal government, a significant move to bolster Nigeria’s economic stability and growth. This bill, soon to be transmitted to the National Assembly, introduces key provisions to amend the Foreign Exchange Act, promoting electronic transactions over cash to increase liquidity.
Key Provisions:
- Empowering the Central Bank: The bill enables the Central Bank to attract international funds, facilitating foreign exchange transactions and remittances to Nigeria.
- Reforms to Companies Income Tax Act: Allows Nigerians to provide services to foreign companies without requiring them to register in Nigeria, creating new employment, income, and entrepreneurship opportunities.
- Overhauling Fiscal Responsibility Act: Guides government-owned enterprises in sharing surpluses and building reserve funds from their revenues.
According to Minister of Finance and Coordinating Minister of the Economy, Wale Edun, these measures will bring in funds from international money transfer organizations, enhance foreign exchange transactions, and open up employment opportunities for Nigerians with specialized skills.
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