FEC Approves Major Tax And Fiscal Overhauls To Boost Employment And Strengthen Nigeria’s Economy

The ESB, based on recommendations from the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, proposes amendments to over 15 tax, fiscal, and establishment laws. These reforms aim to drive economic stability, reduce inflation, strengthen the naira, create jobs, and promote fiscal discipline while alleviating poverty.

In a social media post on Tuesday, Oyedele highlighted ten key amendments outlined in the bills, emphasizing their potential to stabilize the economy and create a foundation for long-term growth. He underscored the importance of these reforms in shaping Nigeria’s fiscal future.

The ten proposed changes include:

Amending income tax laws to create employment opportunities for Nigerians, especially in the digital economy and global value chains.
Introducing zero-rated VAT and enhanced incentives to boost exports of goods, services, and intellectual property.
Simplifying local content requirements and facilitating investment in the gas sector for improved competitiveness.
Reforming the foreign exchange regime to increase the CBN’s regulatory powers, unlock more forex liquidity, and stabilize the naira.
Offering tax reliefs to private sector employers who provide wage awards and transport subsidies to employees.
Providing tax incentives to companies that generate and retain employment for at least three years.
Enhancing fiscal discipline and improving remittances from government agencies to the Consolidated Revenue Fund.
Collaborating with states to suspend certain taxes on small businesses and vulnerable populations, including road haulage levies.
Launching the “Tax Identification Consolidation and Collaboration (TICC)” initiative to expand the tax base and ensure fair competition among businesses.
Allocating additional funds for the Students Loan Scheme.