The Bank Directors Association of Nigeria has expressed strong concerns about the recent imposition of a 70% windfall tax on banks’ profits from foreign exchange transactions for 2023 to 2025.
The Chairman, Mustafa Chike-Obi, criticized the tax as excessively high and poorly timed, especially given the current bank recapitalization efforts.
The association acknowledged the government’s intentions but stressed the need for clearer guidelines and more dialogue before implementing such a significant tax change.
They highlighted concerns about the potential negative impact on the banking sector’s growth, service quality, and the overall economy.
The board also raised issues about the ambiguity in the tax’s application and its interaction with other existing taxes.
They called for a consolidated review of all bank taxes and emphasized the importance of engaging with the banking sector to ensure that future policies support both revenue generation and a healthy banking environment.