The Bank Directors Association of Nigeria (BDAN) has urged the Nigerian government to reassess the newly implemented 70 per cent windfall tax on bank profits derived from foreign exchange transactions.
This tax, slated to be effective from 2023 to 2025, has raised considerable apprehension within the banking sector, particularly due to its timing and potential implications for ongoing recapitalisation efforts.
In a statement signed by BDAN's Chairman, Mustafa Chike-Obi, the association recognised the government's intentions behind the windfall tax but insisted the levy is grossly burdensome and inopportunely imposed.
The body stressed that the exorbitant tax rate could smother growth and innovation within the banking industry, inevitably impacting the quality of financial services available to customers and the broader economy.
Chike-Obi appealed for more extensive consultation and dialogue between the government and stakeholders in the banking sector before enacting such substantial changes.
