Coronavirus: Reps pass Economic Stimulus Bill

The House of Representatives on Tuesday passed for third reading an economic stimulus bill that seeks to provide a stimulus package for companies and individuals badly impacted by the novel coronavirus that has become a global pandemic.

Dubbed the Emergency Economic Stimulus Bill, 2020, the draft law aims at providing temporary relief to companies and individuals to alleviate the adverse financial consequences of an economic slowdown caused by the COVID-19 disease.

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It also aims at protecting the employment status of Nigerians who might otherwise become unemployed as a consequence of management decision to retrench personnel in response to the prevailing economic realities.

Based on the importance the House attached to the bill, lawmakers suspended their rules to allow the draft law to be introduced for first reading, debated under second reading and passed through third reading after the consideration of the report at the Committee of Whole.

Sponsored by the Speaker Femi Gbajabiamila, the Deputy Speaker Ahmed Wase and eight other principal officers of the House, the bill also provides for a moratorium on mortgage obligations for individuals at a time of widespread economic uncertainty.

Also, the bill seeks to eliminate additional fiscal bottlenecks on the importation of medical equipment, medicines, personal protection equipment and other such medical necessities as may be required for the treatment, and management of COVID-19 disease in Nigeria.

It would equally carter for the general financial well-being of Nigerians pending the eradication of the pandemic and a return to economic stability.

In essence, the Emergency Economic Stimulus Bill, 2020, will provide a new regime of corporate tax rebates to encourage companies in the country to maintain their payroll status for the immediate term.

Gbajabiamila said: “This, we hope will prevent large scale job losses in an already fragile economy and allow our people to carry on with their lives as best as possible in the event of a large scale outbreak of the sort we have witnessed in other parts of the world.”

Leading the debate, the speaker said the bill primarily seeks to grant companies a rebate on companies’ income tax to the value of 50 per cent of Pay As You Earn (PAYE) deductions so long as such companies maintain their PAYE rolls as at March 1 to June 2020.

He noted that the suspension of import duties on the items listed would take effect between March and June, a period of three months and that the minister of health may by regulations publish in the gazette to specify such goods.

Gbajabiamila argued that the draft law would also defer mortgage obligations on residential mortgages obtained by individual contributors to the National Housing Fund for three months in the first instance.

He said the measures are temporary, which would help Nigeria to effectively manage the present crisis and emerge from it with the possibility of rebirth and renewal.

The speaker argued further that as Nigeria does not have a robust system of health insurance, a large scale breakout will put a strain on family finances, hence the need for a moratorium on making mortgage payments.

With its passage through third reading, the bill is expected to be transmitted to the Senate for concurrence after which it would be forwarded to President Muhammadu Buhari for assent.