By Egena Sunday Ode
The Federal Government has given its nod to the Economic Stabilization Bill, which is aimed at boosting liquidity and creating employment opportunities across Nigeria.
Expected to be submitted to the National Assembly shortly, the bill seeks to amend the Foreign Exchange Act, with a focus on promoting electronic transactions over cash payments to increase liquidity within the economy.
Briefing newsmen on the outcomes of the Federal Executive Council, FEC meeting presided over by President Bola Tinubu, the Finance Minister Wale Edun explained that the bill grants the Central Bank of Nigeria, CBN, greater powers to attract international funds and facilitate foreign exchange transactions.
“It gives the Central Bank even greater ability to bring in and attract funds such as the money from international money transfer organizations and others that want to transact foreign exchange business and, in fact, remit funds to Nigeria,” he said.
The bill also introduces changes to the Companies Income Tax Act, aimed at encouraging Nigerians to offer services to foreign companies without the need for those businesses to be physically registered in Nigeria, he said.
This, according to Edun, will open new avenues for employment, income, and entrepreneurship.
“Nigerians with the skills, the expertise and the relevant relationships will be able to stay in Nigeria, and provide services to foreign companies at home… opening up a whole vista of employment opportunities, income opportunities, and entrepreneurship opportunities,” he added.
Also, the minister revealed that the bill includes amendments to the Fiscal Responsibility Act, particularly concerning the management of surpluses by government-owned enterprises.
“There are changes to the Fiscal Responsibility Act… that affect, in particular, government-owned enterprises and how they are to share their surpluses and put in place reserve funds,” he explained.
The proposed reforms, if passed by the National Assembly, are expected to contribute to Nigeria’s economic stability and long-term growth, the Minister said.
