The Bank Directors Association of Nigeria (BDAN) has called on the federal government to reconsider the recently imposed 70 per cent windfall tax on profits generated from foreign exchange transactions by banks.
In a statement signed by BDAN’s Chairman, Mustafa Chike-Obi, the association acknowledged the government’s intentions behind the tax but described the levy as, “excessively burdensome and ill-timed.”
The tax, set to apply from 2023 to 2025, has raised significant concerns in the banking sector, particularly regarding its timing and potential impact on ongoing recapitalisation efforts.
The body reiterated that the high tax rate could stifle growth and innovation within the banking industry, ultimately affecting the quality of financial services available to customers and the broader economy.
Chike-Obi highlighted the need for greater consultation and dialogue between the government and stakeholders in the banking sector before enacting such significant changes.
The statement reads: “We, the Bank Directors Association of Nigeria (LTD/GTE) wish to formally address the recent imposition of a 70 per cent levy on the profits realised from foreign exchange transactions by banks for the financial years 2023 to 2025.
BDAN further observed that the primary concern lies in the ambiguities of the language in this amendment which leave critical questions unanswered.
