Tag
FX GAINS
Nigerian banks have begun releasing their Q1 2025 results, and while many are still posting billions in profit, the era of runaway earnings growth may be drawing to a close.
Nigeria's leading commercial banks recorded significant FX revaluation gains, estimated at a combined total of N3.37 trillion in 2023 and Q1 2024, primarily due to the devaluation of the Naira last year.
The Nigerian senate yesterday passed the amendment bill of the 2023 finance act and increased the windfall levy on banks foreign exchange revaluation gains from 50% as proposed by the President to 70%.
Early trading data in the Nigerian Exchange has shown a pattern of decline across bank stocks, as investors react to the proposed 50% tax on FX gains.
The federal government plans to tax bank 50% of profit realised from foreign exchange revaluation in 2023.
President Tinubu has asked the Senate to amend the 2023 Finance Act to impose a one-time windfall tax on the foreign exchange gains realized by banks in their 2023 financial statements.