Tony Elumelu Supports Windfall Tax on Banks’ FX Gains, Citing Poverty Alleviation

Tony Elumelu, chairman of the United Bank of Africa (UBA), expressed his support for the federal government’s introduction of a windfall tax on banks’ foreign exchange gains.

This tax is aimed at sectors or businesses that have significantly profited from favourable market conditions.

His comments came during a meeting with President Bola Tinubu and other representatives of Nigeria’s banking sector at the State House in Abuja. The meeting, held on Wednesday, sought to clarify details about the windfall tax.

On July 17, President Tinubu requested the national assembly to revise the 2023 Finance Act to include a one-time windfall tax on these gains.

Subsequently, the national assembly raised the tax rate to 70 per cent from the initially proposed 50 per cent in the 2024 amended Finance Act, which sparked concerns among financial professionals.

During the meeting, Tony Elumelu voiced his endorsement of the government’s initiative, stating that such measures are designed to alleviate poverty and democratize prosperity across Nigeria, ensuring all citizens have access to a good life.

“We believe that extraordinary income should contribute to alleviating national poverty, aligning with government intentions,” he remarked.

Tony Elumelu emphasized the need for balanced prosperity that ensures no single group suffers unduly while supporting government efforts to sustain job creation and business success.

He underscored the importance of creating an inclusive environment where business owners, ordinary Nigerians, and both foreign and domestic investors can thrive, ultimately fostering a happier and more prosperous society.

Additionally, on July 31, Femi Otedola, chairman of First Bank of Nigeria (FBN) Holdings, also supported the windfall tax, advocating for it as a means to ensure a fairer distribution of wealth amid extraordinary financial gains.