Nigeria Mulls One-Time 50% Windfall Tax on Bank Forex Profits
Nigerian President Bola Tinubu asked lawmakers to allow a one-time windfall tax on banks, alongside a request to increase government spending by as much as 6.2 trillion naira ($3.8 billion).
The money would be used to fund infrastructure projects and other priorities. The request to lawmakers included the windfall tax on the foreign exchange gains realized by banks in their 2023 financial statements.
The naira’s steep depreciation after Tinubu loosened foreign exchange controls last year handed some lenders significant profits.
The president made the request in a letter to the Senate on Wednesday that spelled out the money would be used to fund capital infrastructure development, education and health care, as well as welfare initiatives.
Beyond the windfall tax, the letter did not specify how the money would be raised.
