President Bola Tinubu has requested the National Assembly to amend the 2023 Finance Act to impose a one-time windfall tax on banks’ foreign exchange (FX) gains.
The president’s request is contained in a letter read by Senate President Godswill Akpabio at plenary on Wednesday.
The windfall tax is a higher tax imposed by the government on businesses deemed to have benefited disproportionately due to favourable market conditions.
The president signed the Finance Act (Effective Date Variation) Order, 2023 on July 6, 2023.
The law took effect on September 1, 2023.
Tinubu said the amendment will allow a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial year.
“Furthermore, the proposed amendments to the Finance Acts 2023 are required to a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare as well as welfare initiatives all which are components of the Renewed Hope Agenda,” the president said.
