Tinubu seeks one-time windfall Tax on Banks' forex gains
This Tinubu's request to amend the Finance Act is seen as a strategic effort to enhance government revenue amidst economic challenges.
Tinubu seeks one-time windfall Tax on Banks' forex gains
President Bola Tinubu has asked the Nigerian Senate to amend the 2023 Finance Act to impose a one-time windfall tax on the foreign exchange (FX) gains realized by Bank in their 2023 financial statements. This development is aimed at bolstering the nation's fiscal policy and a strategic effort to enhance government revenue amidst economic challenges. Nine of Nigeria’s leading banks reported over ₦2 trillion in foreign exchange (FX) gains during the first nine months of 2023, following the Central Bank's decision to float the naira and unify the multiple exchange rate markets. In September 2023, the Central Bank of Nigeria (CBN) prohibited commercial banks from using these FX gains to pay dividends or cover operating expenses. The proposed amendment would allow the government to tax the substantial FX revaluation gains recorded by Nigerian banks following the unification of the foreign exchange market in 2023. Data shows that major commercial banks listed on the Nigerian Exchange …
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