Connect with us

Business

Windfall tax: Nigerian banks dare FG over remittance

Published

on

Spread the love

Nigerian banks and the federal government, through the Federal Inland Revenue Service, have been enmeshed in disagreement over how much should be paid in a one-off foreign exchange windfall tax, two weeks after an initial deadline elapsed.

Recall that President Bola Ahmed Tinubu in July 2024 sought lawmakers’ approval for a 50 percent tax on banks’ realised foreign exchange gains following the naira devaluation on June 14, 2023.

Thereafter, both chambers of the National Assembly passed the bill seeking the one-off tax, called the wildfall tax, with the Senate raising the rate to 70 percent.

Nigerian top-tier banks were to be debited by the CBN on December 31, 2024, for the windfall tax.

However, Business Day on Monday reports that barely two days after the deadline, Nigerian banks are yet to give in on the windfall tax implementation.

The banks and the FIRS, however, can’t seem to agree on the tax due, two weeks after the payment deadline.

“The banks are having a quiet tango with the FIRS on the windfall tax issue at the moment,” a source familiar with the matter told Business Day.

“The banks are arguing with the FIRS on the calculated sums of tax due and are reverting with their own calculations based on the same principles the FIRS is basing its numbers on.

“All banks were going to be debited on December 31 by the CBN based on FIRS numbers, but the coordinating minister of the economy said no.

“Most of the banks now live in fear of being hammered anytime from now by the CBN based on whatever FIRS wants to do,” the source further said.

The windfall tax comes as the Nigerian banks benefit from Tinubu’s foreign exchange reform in 2023, which led to an initial 40 percent devaluation of the currency.

Four of Nigeria’s five largest banks recorded huge foreign exchange revaluation gains in 2023, with First Bank of Nigeria Holdings the only exception.

To this end, reports have it that Access Bank, Zenith Bank, Guarantee Trust Bank, and United Bank for Africa saw their combined gross earnings more than double to N8 trillion in 2023.

Similarly, profit before tax for the four banks jumped more than two-fold to N2.9 trillion, according to the results declared for the year.

Gains made from currency revaluation account for as much as a third or more of their entire profit for the year under consideration, according to the credit-rating agency Moody’s, which covers the top nine Nigerian lenders.

The Chairman of the Federal Inland Revenue Service, Zacch Adedeji, in July said the windfall tax is a recovery plan to balance the Nigerian economy.

This comes amid the opposition by stakeholders in the banking sector.

However, Femi Otedola, the chairman of FBNH, whose bank was not affected, backed the federal government on the implementation of the windfall tax.

The tax will see the federal government rank in 70 percent of the N3.7 trillion FX gain by banks in 2023.

Business

Energy expert urges Tinubu to end petrol import, prioritise local refining

Published

on

Spread the love

 

Energy expert, Dan Kunle, has warned that the continued importation of petrol and diesel by the Nigerian National Petroleum Corporation (NNPC) Limited and certain marketers, despite the Dangote Petroleum Refinery’s capacity to meet domestic demand, is a disservice to the country.

Recent reports indicate that NNPC, Oil Marketers spent N5.5tn on petrol, diesel importation in four months.

Speaking on a programme on Arise TV on Sunday, Dan Kunle likened the massive importation of petrol and diesel by NNPCL and some marketers over the past four months to the notorious ‘cement Armada’—a scandal from the 1970s, during Nigeria’s oil boom, where hundreds of cement-laden ships flooded the ports, causing years of congestion.

Kunle expressed his disappointment that, despite President Bola Tinubu’s directive and the Federal Executive Council’s decision to allocate local crude oil to domestic refineries, relevant government agencies is blatantly disregarding these directives with no consequences.

He said: “I was expecting a transition following the Federal Executive Council’s decision in October 2024 to allocate local crude to domestic refineries, with Dangote Refinery being the key player due to its technical capacity.

“However, the situation hasn’t changed, and we’re still seeing a massive influx of imported fuel. It’s still a full import Armada, similar to the cement Armada. The level of imports we’re witnessing is unprecedented, raising serious concerns about what’s really going on. Is it an attempt to flood the market, introduce substandard fuel into Nigeria, and possibly frustrate Dangote Refinery?

“The mistake here is that Dangote Refinery is operational, already refining 550,000 bpd and producing high-quality products. This importation is completely unnecessary. It’s time to urge the president to act and end this petrol import racket once and for al.”

Kunle emphasised that it defies logic for certain individuals to continue pushing for imports, especially when countries like the United States are protecting domestic industries to boost their own economies. He added that the Dangote Refinery could ensure energy security, something the regulatory authorities have neglected for years.

He called on President Tinubu to demand a transition timetable from the relevant authorities outlining when Nigeria will shift from being an importer of refined products to a net exporter. Stressing that Dangote Refinery is a strategic national asset, Kunle urged the government to remove obstacles to its smooth operation.

He said: “The Dangote Refinery is a national strategic asset. There’s no need for a court case. The federal government should step in. We don’t need a legal battle; the government should ask the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA for a transition timetable to move us from importing petrol to self-sufficiency. If the president stays aloof, it will harm the country. No new investments will come if you treat an investment like Dangote’s as an enemy. The importers are the true enemies.”

Kunle stressed that with Dangote Refinery’s capacity and the reported revival of the Port Harcourt and Warri refineries, Nigeria should be transitioning from reliance on oil imports to becoming a net exporter of refined petroleum products.

Continue Reading

Business

Did CBN Unveil ₦5000 Note With Tinubu’s Image? Fact Emerges

Published

on

Spread the love

The claim that the CBN has unveiled a new ₦5000 note with the image of President Bola Tinubu has been fact-checked Several social media users claimed that the new note would be released later in 2025 and the first sample was released in January However, fact-checking revealed that the image being shared on social media was generated by Grok, an AI tool embedded in the social media platform X

 

There have been claims on social media that the Central Bank of Nigeria has unveiled the first sample of a single ₦5000 note and the image the new note carries is President Bola Tinubu.

CBN has not released any new ₦5000 note with President Bola Tinubu on it Photo Credit: Express, Asiwaju Bola Hammed Tinubu Source: Twitter

 

The Facebook post reads in part: “The Central Bank of Nigeria (CBN) has unveiled the first sample of the ₦5000 note, which will soon be distributed to banks.

The note features a portrait of President Bola Ahmed Tinubu. According to the CBN Governor, this decision honours Tinubu for his commendable contributions during his presidency.”

 

Recall that in 2012, the apex bank announced plans to introduce the ₦5000 note to Nigerians. However, the CBN backtracked these moves in 2022. Over the years, the elites have been calling on the government to introduce the ₦5000 notes.

AI-generated ₦5000 notes on social media The claim about the new ₦5000 has been made on several other Facebook pages but Africa Check has confirmed that the ₦5000 image in circulation was an AI-generated image.

Recall that the CBN initiated the move to redesign Nigeria’s currency in 2022. The development led to a temporary shortage of the new notes over ineffective distribution.

However, the claim that the apex bank plans to create a new ₦5000 notes in 2025 has not been reported by any credible media. Such news would have made the headlines if the report was genuine. Source of fake ₦5000 note online

The social media users who shared the questionable ₦5000 notes tried to crop out the “Grok” watermark on the image.

The watermark was an indication that the ₦5000 note being shared on Facebook was generated by Grok, an Artificial Intelligence (AI) embedded in the microblog, X.

Over time, many people on social media have used AI tools to spread misinformation. Such claims have been fact-checked and debunked by several recognised fact-checking organisations.

Seyi Tinubu receives the president’s appointee Legit.ng earlier reported that APC national youth leader Dayo Israel took his appointment letter as the chairman of the governing board of FMC Abeokuta, Ogun state, to Seyi Tinubu.

The APC youth leader started generating mixed reactions from Nigerians, receiving condemnation and commendation.

President Bola Tinubu appointed Dayo Israel and 43 others as chairs of the board of directors at different government agencies and ministries. Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

 

 

 

Continue Reading

Business

New ATM charges could push Nigerians back to bank halls – Sani warns CBN

Published

on

Spread the love

Former Kaduna Senator, Shehu Sani, has criticized the Central Bank of Nigeria (CBN) for removing free Automated Teller Machine (ATM) withdrawals for customers using ATMs of other banks.

On Tuesday, CBN announced the removal of the three free monthly withdrawals that were previously allowed for such transactions.

A circular issued on February 10, 2025, and signed by the Acting Director of the Financial Policy and Regulation Department, John Onojah, instructed banks and financial institutions to implement the new ATM withdrawal charges starting March 1, 2025.

The revised policy stipulates a fee of N100 per N20,000 withdrawn at another bank’s ATM within bank premises.

For withdrawals made at off-site ATMs, an additional surcharge of up to N500 will be imposed. The surcharge, which will serve as income for the ATM owner, must be disclosed to the customer before the transaction.

Reacting to the decision in an X post on Thursday, Sani warned that the rising ATM charges could force Nigerians to return to the practice of cashing cheques in person at bank branches.

He wrote, “If the CBN continues to increase ATM charges, people will return to the era of physically entering the Bank to cash their cheques.”

Continue Reading

Trending