Economy

Otedola backs Nigerian govt’s windfall tax on banks’ FX profit

Published

2 years ago

First Bank of Nigeria Holdings (FBN Holdings), a leading financial services group led by Nigerian billionaire Femi Otedola, has reported a

The Chairman of First Bank Holdings Holdings and billionaire, Femi Otedola said that Nigeria’s government’s windfall tax on commercial banks’ foreign exchange gain in 2023 will ensure fairer wealth distribution.

Otedola disclosed this in a recent statement.

He becomes the first financial heavyweight in Nigeria to announce support for the tax.

The billionaire also called on banks to halt extravagant spending on private jets, urging a focus on operational efficiency and customer service.

He emphasised the need for reforms in the Nigerian banking sector to enhance economic stability and integrity.

“Windfall taxes, which are levied on companies or individuals who receive substantial, unexpected profits, ensure a fairer distribution of wealth,” he said.

“This allows those who benefit disproportionately to contribute more significantly to the broader societal good.”

we recalls that the windfall tax, initially proposed by President Bola Tinubu at 50 per cent on bank profits FX profits in 2023, was increased to 70 per cent by the Senate and passed into law. This tax will be in effect from 2023 to 2025.