FG Plans to Impose 50% Tax on Banks to Fund New Minimum Wage

The Nigerian government plans to impose a 50% tax on the profits banks earned from foreign exchange revaluation in 2023. This initiative aims to generate funds to support an increase in the minimum wage for workers. The announcement was made by Imran Muhammed, a member of the All Progressives Congress, on Wednesday.

President Bola Tinubu has submitted proposed amendments to the 2023 Finance Act to the National Assembly, seeking their approval for this new tax measure. The proposal is part of the administration’s broader efforts to address economic challenges and improve the standard of living for Nigerian workers.

In an official statement, the government detailed the plan, stating, “The government intends to implement a 50 per cent tax on the profits that banks earn from foreign exchange revaluation in the year 2023. There shall be levied and paid to the benefit of the Federal Government of Nigeria a tax of 50 per cent on the realized profits from all foreign exchange transactions of banks within the 2023 financial year.”

The proposed tax is expected to significantly boost government revenue, providing the necessary funds to increase the minimum wage and support other economic initiatives aimed at alleviating poverty and stimulating growth. The measure reflects the government’s commitment to ensuring a fair distribution of wealth and addressing the financial disparities in the country.

The National Assembly is expected to deliberate on the proposed changes in the coming weeks. If approved, the tax will be a major step in the government’s strategy to enhance fiscal stability and support social welfare programs.