President Bola Tinubu on Wednesday met with the representatives of leaders of Nigeria’s banking sector over the recently imposed Windfall Tax.
United Bank for Africa Chairman, Mr. Tony Elumelu, and the Group Chief Executive Officer of the First City Monument Bank, Ladi Balogun were in attendance of the meeting.
President Tinubu introduced a one-time windfall tax aimed at the substantial foreign exchange gains reported by banks in 2023. The tax seeks to generate additional revenue for crucial infrastructure, education, and healthcare projects under his Renewed Hope Agenda. The windfall tax specifically targets the significant profits banks made due to the naira’s devaluation in 2023.
The Minister of Finance, Wale Edun disclosed that attendees discussed the banking sector’s role in promoting economic growth.
At the meeting, the Chairman of the Federal Inland Revenue Service, Mr Zacch Adedeji, explained the government’s plan to simplify the tax regime by taxing only profits and allowing companies’ capital to grow.
UBA Chief, Elumelu, reasoned that mutual prosperity is vital to sustaining the system. He said where businesses thrive, jobs are created, and foreign and local investors benefit, leading to a prosperous society
Commenting on the windfall levy that has just been passed by the National Assembly, UBA Chairman, Tony Elumelu stated thus:
“We believe in prosperity, in creating jobs and employment for our people, in democratising prosperity, and in ensuring that Nigerians have access to a good life. So today, we spoke about the Windfall Tax. We support the government.
“We believe that where extraordinary income has made a part of, it should go towards helping to alleviate poverty in the country, which is what the government intends to do.
“We support that, and we just believe that we should ensure that no one segment suffers, that the government is able to continue to create jobs, and that businesses are also able to do well because we need mutual prosperity.”