The Federal Government implemented a Windfall Tax on banks’ foreign exchange profits to boost revenue, targeting substantial gains from the naira’s 2023 devaluation. Introduced via the 2023 Finance Act amendment, this tax is designed to fund essential infrastructure, education, and healthcare under the Renewed Hope Agenda. The term “windfall” refers to unexpected gains from forex transactions as reflected in banks, financial statements from 2023-2025 akin to fruits or trees blown down by the wind. The Senate approved raising the levy from 70 percent and extended its applicability to all foreign exchange transaction profits through 2025.
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