The Nigerian Senate has taken a significant step towards amending the Finance Act of 2023 by passing a Bill for a second reading. The purpose of the amendment is to introduce a windfall tax on banks and establish provisions for its administration.
Sponsored by Bamidele Opeyemi, the Senate Leader, the bill received prompt consideration, being read for the first and second time on Wednesday in the upper chamber. This move comes after President Bola Tinubu wrote a letter to the Senate, urging them to impose a one-time windfall tax on foreign exchange gains. The proceeds from this tax would be allocated to fund capital projects, education, healthcare access, and public welfare initiatives, all in alignment with the Renewed Hope Agenda.
During the debate on the Bill, Opeyemi emphasized that the President’s proposals are commendable and will address the pressing needs of the Nigerian citizens.
Supporting the amendment, Senator Adamu Aliero pointed out the imminent arrival of the minimum wage bill in the National Assembly, emphasizing the necessity of additional funding to accommodate it.
However, Seriake Dickson, the lawmaker representing Bayelsa West, expressed opposition to the Bill, citing the current economic depression as a reason to refrain from imposing further taxation. He proposed that the taxation of banks be temporarily set aside for more extensive consultation, considering the challenges the economy and banks are currently facing.
Despite the opposition, several other lawmakers supported the bill, leading to its eventual second reading. The Bill has been referred to the Committee on Appropriation for further legislative input, and the committee is expected to report back within a week.
