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One-off windfall tax on banks forex profit, creative revenue initiative for capital projects -TMSG

Published

2 months ago

July 24, 2024

Joel Ajayi

The one – off windfall tax policy on profits made by banks on foreign exchange revaluation by the President Bola Tinubu administration has been described as a product of ingenuity and creativity.

The Tinubu Media Support Group (TMSG) which made this assertiom said that only a creative mind like President Bola Tinubu could come up with this innovation of one-off windfall tax on profits made by banks from foreign exchange revaluation of 2023.

In a statement signed by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, the group added that the government’s decision to deploy proceeds from the tax to infrastructure development is a good way of getting the banks to give back to the society and participate more concretely in national development.

Going down the memory lane, the TMSG recounted that When the Central Bank of Nigeria (CBN) unified the multiple foreign exchange rates last year, it was clear to every discerning Nigerian that commercial banks in the country would make a tidy profit from the policy.

“So it was not a surprise that many of the banks which barely made N5bn in foreign exchange gains in 2022 were posting profits as high as N26bn in their financial statements in the subsequent year.

For example, one of Nigeria’s biggest commercial banks holding company posted a revaluation gain of N441.79bn last year, far outsripping a meagre N57.94bn it recorded in 2022.

“We also have it on good authority that nine of Nigeria’s top banks made over N2tn in the first nine months of 2023 after the CBN floated the naira but the good thing is that they were open enough to declare it as gains from the revaluation of foreign currency-denominated assets and liabilities held in their non-trading books.

“It is a good thing, however, that the President Bola Tinubu administration has deemed it fit to impose a one-time windfall tax of 50% on the banks’ forex gains which, according to provisions of the amendment sought to the Financial Act, would be ploughed into capital infrastructure development, education and health care projects lined up in the Renewed Hope Agenda.

“There is a strong possibility that the Federal Inland Revenue Service (FIRS) will collect in excess of N1tn from the windfall tax and we are convinced that the Tinubu administration will ensure judicious use of the revenue in line with provisions of the proposed amendment to the act.

“We know that some tax and advisory service firms have been expressing concerns about what they consider as drawbacks, but we are opting to look at the positives.

“We see it as a better option to funding the additional N6tn made to the 2024 budget rather than employing measures that will increase the tax burden of the average Nigerian.

“It is a creative endeavor that will still see the banks holding on to half of the massive gains they made at the expense of Nigerians in one year. So it is a win-win situation which will see the banks give back to the society.”

The pro-Tinubu group urged state holders in the banking industry to see the proposed tax as their contribution to national development.

end

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Nigeria Will Take Good Shape In No Distant Time- Olawande

Published

6 hours ago

September 16, 2024

The Gleamer

Joel Ajayi

The Minister of State for Youth Development, Ayodele Olawande has urged the citizens of the country to be patient with the Administration of President Bola Ahmed Tinubu in transforming the lives of its citizens through various policies and programs of the federal government.

The Minister made this submission while delivering his speech at the Joint Union Negotiating Council’s week of the Federal Ministry of Youth Development branch. This is the first edition since both Ministries of Youth and Sports had been damaged. The JUNC week which was held at Atiku Hall, Office of Head of Civil Service of the Federation in Abuja had its theme: “The working people in a volatile, uncertain, and complex economy”

In the words of the Honourable Minister: “I urge you to be patient with this administration. In no distant time, the country will take good shape and the lives of its citizens will be transformed”.

“President Bola Ahmed Tinubu is not a pauper, he is an acknowledged epitome of wealth, and so it cannot be said of him that he desires to loot the treasury of Nigeria. He has seen money and as a result of this, he is not interested in looting the nation’s treasury”, Olawande explained.

He emphasized that “leadership is all about being committed to serve. If you are a Minister now, tomorrow you will be addressed as a former Minister, likewise a Director because there is no permanent position but the impact that you made while in that office will speak after you”, the Minister reiterated.

Olawande expressed his gratitude to the workers of the Ministry for being supportive of the government policies and programs. He promised that the welfare of the staff would not be compromised, adding that workers deserve remuneration for being hardworking.

Earlier in his address, the Permanent Secretary of the Ministry, Mr. Olubunmi Olusanya admonished the staff of the Ministry to put in their best as “Performance Management System” which replaces APER is the criteria to be used for promotion effective next year. This, according to him is because the Performance Management System (PMS) records the best efforts and input of each staff which will in turn be used to grade such staff.

Olusanya who disclosed that the welfare of the staff is his priority as workers deserve the best for the services rendered. He opined that “the hungry man is angry and as a worker, if you are not treated fairly and properly, it is impossible to get the best out of you. As a result, all staff will be treated properly as motivation to propel the best in you”, he concluded.

The Head of the Civil Service of the Federation, Mrs. Esther Didi Walson-Jack, OON, MNI, in her address, informed that the activity to reinvigorate the Civil Service in a bid to ensure that Civil Servants carry out their duties with much diligence to have efficient and incorruptible civil service is currently on course. She advised workers to wake up and be committed to the service of the nation.

In his closing remarks, Mr. Jerry Akume, the General Secretary of the Union expressed his delight in celebrating this year’s edition of the Union week, while highlighting the achievements of the union so far. These include:

Upward review of staff welfare, prompt payment of repatriation allowances, payment of first 28 days allowance, assistance to the sick, general training of staff, and sending forth/retirement package for retired staff.

He also appealed to the Management of the Ministry, saying that irrespective of the aforementioned achievements, a lot still needs to be done in such areas as procurement of staff buses, upward review of welfare payment for festive periods, consistent general staff training, and procurement of office and work materials.

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