The Federal Executive Council (FEC) has approved the landmark Economic Stabilisation Bill, designed to enhance the country’s economic stability and drive sustainable growth.
The bill introduces critical reforms aimed at improving liquidity, fostering investment, and creating new opportunities for entrepreneurship.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing after the FEC meeting, chaired by President Bola Tinubu at the Presidential Villa in Abuja.
One of the bill’s key features is an amendment to the Foreign Exchange Act, which promotes a shift from cash-based transactions to electronic platforms, enhancing foreign exchange liquidity and streamlining international remittances.
According to Edun, the bill empowers the Central Bank of Nigeria (CBN) to attract international funds and facilitate smoother foreign exchange transactions, helping to stabilize Nigeria’s currency and boost foreign direct investment.
“The bill gives the Central Bank even greater ability to bring in and attract funds such as those from international money transfer organizations and others that want to transact foreign exchange business and remit funds to Nigeria,” said Edun. This reform, he added, is part of a broader strategy to modernize the country’s financial system and promote economic resilience.
Another significant component of the Economic Stabilisation Bill is an amendment to the Companies Income Tax Act, which allows Nigerians to offer services to foreign companies without requiring those companies to be physically registered in Nigeria. This measure is expected to open new avenues for employment, increase income generation, and stimulate entrepreneurship by enabling Nigerians to work remotely for international firms, broadening access to global markets.
“These amendments will enable skilled Nigerians to provide services to foreign companies from within Nigeria, creating a whole vista of employment opportunities, income opportunities, and entrepreneurship opportunities,” Edun explained.
In addition to these reforms, the bill proposes a comprehensive overhaul of the Fiscal Responsibility Act, which will provide clearer guidelines on how government-owned enterprises should allocate their surpluses and build reserve funds from their revenues. This move is expected to improve the management of public resources and ensure that excess revenues are reinvested into the economy for long-term growth.
The Economic Stabilisation Bill forms a key part of President Tinubu’s economic reform agenda, which seeks to create a more conducive environment for growth, innovation, and investment.
By addressing critical issues in the financial and business sectors, the bill aims to strengthen Nigeria’s economic foundations and position the country for sustainable development.
The bill will now be transmitted to the National Assembly for further deliberation and approval, marking a crucial step in the administration’s efforts to reform the nation’s economic landscape.
With these reforms, the federal government hopes to attract more international investments, promote entrepreneurship, and ensure that Nigeria’s economy remains competitive in the global market.
