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The Bank Directors Association of Nigeria (BDAN) has distanced itself from the views of some bank chairmen on the proposed foreign exchange windfall tax.
The association's chairman, Mustapha Chike-Obi, stated that BDAN will communicate its stance on the issue after its board meeting on August 12.
He clarified that the personal views expressed by certain bank chairmen did not represent the banking community as a whole.
The Chairman of FBN Holdings, Femi Otedola, stated that the revenue generated from the forex segments harmonisation policy implemented in June 2023 could be channelled into essential public services, such as healthcare, education, and infrastructure, benefiting all citizens and helping to reduce social inequalities.
He said the recent announcement of a windfall tax on the extraordinary profits earned by Nigerian banks is a significant first step towards achieving these goals, as the consolidation of various foreign exchange rate systems into a single investors' and exporters' window led to the depreciation of the naira and substantial increases in the value of bank assets denominated in United States dollars.
He added that the financial statements of manufacturing, telecoms, and SMEs indicated that many of those companies might not be able to pay corporate tax for at least the next two years, as they were currently showing negative equity.
"The government must intervene and provide support to bridge these gaps, ensuring revenue generation and fostering economic development," the bank chief maintained.
Also, after a meeting with President Bola Tinubu on Wednesday, the Chairman of the United Bank for Africa, Tony Elumelu, reasoned that mutual prosperity was vital to sustaining the system.
He said where businesses thrive, jobs are created, and foreign and local investors benefit, leading to a prosperous society.
He said: "We believe in prosperity, in creating jobs and employment for our people, in democratising prosperity, and in ensuring that Nigerians have access to a good life. So, today, we spoke about the Windfall Tax. We support the government.
"We believe that where extraordinary income has been made, it should go towards helping to alleviate poverty in the country, which is what the government intends to do.
"We support that, and we just believe that no one segment should suffer, that the government is able to continue to create jobs, and that businesses are also able to do well because we need mutual prosperity."
The FCMB Group Chief Executive, Ladi Balogun, in his comments after the meetings, remarked, "The purpose of the meeting was to ensure that this government's reform agenda is well transmitted to not only the banking sector but also the investment community. We sought to ensure that we were all on the same page."
"The banking system and industry aim to reinvest some of their profits into the broader economy.
"The current government and administration are seen as supportive of investment and growth, as evidenced by their willingness to address the industry's concerns."
