By Jemimah Wellington, JKNewsMedia Reporter
SEVERAL NIGERIAN banks have reported a payment of about N205.6 billion as part of their windfall tax for the 2024 financial year, according to an audit filed with the Nigerian Exchange Limited (NGX).
However, the total payments fall significantly short of the N1 trillion expected by the Federal Government.
The audit reports show that six major financial institutions have made contributions, including Zenith Bank, United Bank for Africa (UBA), Fidelity Bank, Wema Bank, Stanbic IBTC Holdings, and Guaranty Trust Holding Company (GTCO).
Notably, both Stanbic IBTC and GTCO are parent companies of their respective subsidiaries, Stanbic IBTC Bank and Guaranty Trust Bank.
Zenith Bank led the pack with the highest payment, amounting to N63.31 billion. UBA, which paid N57.91 billion, has provided a breakdown of the amount, noting that it was a combined payment for both the 2023 and 2024 fiscal years.
The payment includes N24.8 billion for 2023 and N33.1 billion for 2024, following discussions with the Federal Inland Revenue Service.
GTCO paid N51.25 billion, while Stanbic IBTC Holdings paid N17.18 billion. Fidelity Bank contributed N13.33 billion, with N5.71 billion of this relating to gains from the 2023 financial year.
The windfall tax, introduced under the Finance Act, imposes a 70 percent levy on foreign exchange gains stemming from currency revaluation.
This tax covers the 2023, 2024, and 2025 financial periods, resulting from the Central Bank of Nigeria’s decision to float the naira.
Despite these payments, speculation is rife that bank executives are lobbying the Nigerian presidency for a reduction in the windfall tax.
This comes as concerns over the tax’s impact on banks’ capital adequacy have been raised by international rating agency Moody’s.
In its report, Moody’s warned that the windfall tax could negatively affect banks, especially those with capital close to regulatory thresholds.
The agency also highlighted that the record profits posted by banks in 2023, largely due to foreign exchange revaluation gains following the naira’s 37 percent devaluation, would be significantly impacted by the tax.
