Nigerian Senate moves to impose windfall tax on banks, passes bill to second reading

The Nigerian Senate has passed for a second reading a Bill seeking to amend the Finance Act, 2023 so it can impose windfall tax on banks and provide for administration of the tax.

The bill which recieved expeditious consideration having been read for a first and second time on Wednesday at the upper chamber was sponsored by Bamidele Opeyemi, the Senate Leader.

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President Bola Tinubu, had on Wednesday written the Senate to impose a one-time windfall tax on foreign exchange gains realized to fund capital, education and healthcare access as well as public welfare initiatives to give sound and solid footing to Renewed Hope Agenda.

The president in the letter urged the Senate to give the bill expeditious consideration.

Leading the debate on the Bill, Opeyemi stated that the President proposals are laudable and will enhance the critical needs of the citizens of Nigeria.

Contributing to the debate, Senator Adamu Aliero, while supporting the amendment pointed out that the minimum wage will arrive the National Assembly soon, hence the need to get additional funding to cater for it.

“If we don’t provide minimum wage before the end of this month there will be public outcry and may lead to stike”, he said, while stressing that banks made huge profits afterall.

But Seriake Dickson, the Lawmaker representing Bayelsa West however opposed the Bill arguing that the economy is currently depressed to allow for more taxation.

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“Let’s step down the taxation of banks for wider consultation. We cannot run our government by continously taxation. We should be cautious because we are managing a depressed economy, even the banks are still battling with recapitalization”, he said.

However several other lawmakers supported the bill and it was eventually read for a second time.

The Bill was referred to the Committee on Appropriation for further legislative input and is expected to report back in a week.