Nigeria’s Senate passed the Finance (Amendment) Bill 2024 on 25 July 2024, which introduces a windfall tax on bank profits from foreign exchange transactions for the 2023 fiscal year.
The newly sanctioned windfall tax is set at 70% on foreign exchange profits, an increase from the initially proposed 50%. The increase is part of Nigeria’s revised Finance Act of 2024.
Earlier, Nigeria’s National Assembly raised the windfall tax on banks’ foreign exchange (FX) gains to 70%. Nigerian President Bola Tinubu signed the Finance Act Order 2023 on 6 July 2023, which came into effect on 1 September 2023.
