Nigeria news highlights a significant development as Zenith Bank, GTCO, and UBA face a collective N172.3 billion windfall tax under the Finance (Amendment) Act 2023. This levy, targeting extraordinary FX gains from the naira’s devaluation due to a market-driven exchange rate initiated in June 2023, underscores policy efforts to bolster national revenue.
These banks have each recognized substantial tax liabilities in their financial reports, with Zenith Bank owing N63.3 billion, GTCO N51.1 billion, and UBA N57.9 billion. As Nigeria’s financial landscape navigates the impacts of this policy, questions around bank liquidity and shareholder returns loom. Observers should monitor how banks adapt to maintaining profitability and strategic investments under this new fiscal pressure.
- Zenith Bank incurred N63.3 billion in windfall tax, impacting its post-tax earnings.
- GTCO’s windfall tax liability totals N51.1 billion, driven by FX gains and interest income.
- UBA faces N57.9 billion in taxes, affecting its profitability amid an N803 billion pre-tax profit.
Find the original report here. Do you think this tax policy will drive banks towards more efficient operations, or could it deter future investments in the Nigerian banking sector? Share your thoughts!
