The Nigerian Senate has passed a bill imposing a one-time windfall tax on banks for foreign exchange (forex) gains.
The bill was approved on Tuesday after Sani Musa, the chair of the finance committee, presented a report to the upper legislative chamber.
In his presentation, Senator Musa clarified that the windfall tax is not intended to be distributed to banks’ shareholders as dividends. He further stated that any bank that fails to meet its tax obligations will incur an additional 10 percent charge on the amount owed.
“The windfall tax is not to be paid by banks to their shareholders,” Musa asserted.
Last week, President Bola Tinubu sent a letter to the National Assembly, requesting amendments to the Finance Act 2023 to enable the federal government to tax banks’ foreign exchange gains.
In his letter, President Tinubu explained that the proposed amendments would facilitate a one-time windfall tax on the forex gains recorded by banks in their 2023 financial statements.
The president emphasized the importance of this windfall tax in funding critical areas such as capital infrastructure development, education, healthcare, and welfare initiatives.
The implementation of this tax is expected to provide a substantial boost to the government’s financial resources, supporting the country’s overall development.
