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Senate Hikes Banks’ Windfall Tax in Amended Finance Bill

The Nigerian Senate passed the Finance Act (Amendment) Bill 2024 on Tuesday. The bill increased the windfall tax on banks’ realised foreign exchange gains from the 50% proposed by the President to 70%.

Following the consideration and adoption of the Senate Committee on Finance report presented by its Chairman, Senator Sani Musa, the Senate proceeded with its presentation.

Musa highlighted that the Senate read President Bola Tinubu’s letter introducing the Finance Act (Amendment) Bill, 2024 during the plenary session on Wednesday, July 17.

He said the bill aims to modify the Finance Act 2023 by introducing a windfall tax on banks’ foreign exchange profits. The proposed amendment would increase the levy charge from 50% to 70%.

Musa stated that the extra N6.2 trillion in the Appropriation Amendment Bill will be funded through a one-time windfall tax on banks’ foreign exchange earnings.

The increase in the Appropriation Bill is to accommodate recurrent expenditures related to the new minimum wage and fund proposed capital expenditures nationwide.

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