nlfpmod:


https://businessday.ng/news/article/senate-increases-windfall-tax-on-banks-to-70/

that is to say, any account there is money and its domant, the bank would have to give out 70% to the cbn

This is madness

If you tax FX profits what happens to FX Loss?

What if subsequently the bank suffer FX losses


Again all Naira denominated assets of these banks have taken a big hit in Dollar and real terms as a result of crash in Naira value

perfri:
lol, you are very funny. we are currently at 110 billion dollars in debt, with oil revenues declining significantly and this is what you ahve to say. you dont seem to have any atom of financial intelligence

So innocent Nigerians should continue to suffer for the loans they collected without anything on ground to show for it?

michlins:
Any government coming after Tinubu go enjoy plenty money. All these taxes will be painful and Tinubu will be blamed for them. But you see the insane amount of revenue accrued from them, subsequent governments will enjoy them

the monies will be spent before the new govt comes in

Yet FG will still borrow loan

BreconHills:
Good move. Banks don't lend to SME's- let them pay the levy. Uk and European countries did same to energy companies.

Comparing yourself to European countries while operating like you're in the year 1850. You don't even have steady power supply 🤦🏼‍♂️

OboOlora:
Akpabio will go down as the most useless Senate President in the history of Nigeria.
So pompous and uncouth, almost playing the role of a President.
Oloshi, oloko dogidogi oshi

Shey the man no pay you after a happy ending.You dey talk like one of his customers for dogi action.

cocolacec:


Shey the man no pay you after a happy ending.You dey talk like one of his customers for dogi action.

this is not an intelligent thing to say

EyeCumInPeace:
Legacy of Tinubu the Tax Collector.

Hmmm,the problem is that you don't see what the government is doing with all the taxes.

The West Development is fuelled by taxation

If these taxes are used with prudence

It will be ok

But if it is wasted and looted and not used for Development of the Nation

Then I am very sorry

In addition where is the creativity and innovation in the Land

If Nigeria as a Nation wants to go far
Creativity and innovation should be the driving force of whatever vision being driven

In addition justice, honesty, fairness should be added also

But if creativity, innovation, Justice, truth , and honesty is not at the center of whatever is being done

I am sorry it will be a wild goose chase


The time has come for our leaders to understand that whatever any Man sows
Nature is there for the reaping

If they shun truth and honesty

They will reap whatever they sow

The time now God in heaven is now making everyman to reap whatever they sow

Reaping time doesn't take Time

And all those that have contributed to the suffering in Nigeria
God the rewarder will ensure they receive there rewards

Everyone should be wiser now

ClearFlair:


Comparing yourself to European countries while operating like you're in the year 1850. You don't even have steady power supply 🤦🏼‍♂️

Ok

The banks and Govt understand the game they are playing. Our bankers are profiteers ...Take much but add little value to the economy ..Let them pay

But if creativity, innovation, Justice, truth , and honesty is not at the center of whatever is being done

On the bolded

Developed and Developing Nations in our world today built there vision on the bolded

That's the secret of there advancement and progress

Many Africans are running away to these Developed and Developing Nations seeking for Greener pastures

If Nigeria and other African Nations are honest about Development and Advancement

They should benchmark and copy these principles


But if it is dishonesty, lies, looting and corruption they want to copy

Nothing will be achieved

It will be merry go round
Going around same circles
With no achievement


Because you can never build anything on nothing
Nature abhors that

michlins:
Any government coming after Tinubu go enjoy plenty money. All these taxes will be painful and Tinubu will be blamed for them. But you see the insane amount of revenue accrued from them, subsequent governments will enjoy them

It's a one time tax
Read

OPEN SECRET......for discerning minds and not some mentally deficient fools that lack comprehension
"Nigeria will never grow or develop never and I repeat never ....this has nothing to do with unpratriotism or being passimistic but rather being objective..............when u check the antecidents of our leaders from Independence, u notice a trend ......they come into power destroy the system and creat bottle necks of beuracracies without looking or seeking out ways to better the nations or citizens....then successive govt come into power engage in the same format followed by the next ...and the circle continue...........the errors of our assumed heroes past are the replicant of our woes today......while the foolishness of our today's today will be the tears of our children after us..........only one thing can be done to salvage this situation BLOOD.........

You cant just please Nigerians. They are worse and stubborn than the children of Isreal during Moses time in the Bible. Taxing these Banks that have been reaping where they did not sow is very commendable. I wish they could even pay tax in arrears form 2021.In an economy struggling you see Banks declaring profit of over 300billon….. How come? Na ghost they patronize them?

FreeStuffsNG:
The Senate is perfectly in order.

The money doesn't belong to the banks!! It's money created by the CBN's unification of the forex in both official and parallel markets.

May God bless Nigeria for ever! Check my signature for free stuffs!

What should happen to companies who suffered as a result of the policy-those who had fx losses..FMCGs like Cadbury, NB, Guinness... will they be given windfall grants ?

being:

What should happen to companies who suffered as a result of the policy-those who had fx losses..FMCGs like Cadbury, NB, Guinness... will they be given windfall grants ?

Same thing that happened to them when they raked in bumper harvests.

Okechinwadike:
thank God we are in it together, including agbadorians

And Oka boys too 😀

michlins:
Any government coming after Tinubu go enjoy plenty money. All these taxes will be painful and Tinubu will be blamed for them. But you see the insane amount of revenue accrued from them, subsequent governments will enjoy them

what did you smoke really? are you not seeing how they are wasting the little they have earned?

BreconHills:
Good move. Banks don't lend to SME's- let them pay the levy. Uk and European countries did same to energy companies.

The problem is not the bank but the SME's sectors. Most of the SME's don't pay back loan in due time or at all. They will start bringing economic challenges putting the banks in a state of quagmire. All the grant and intervention funds all down the drain (some are wrong targets and others are just pure insincerity from SME business).
Hence, what is the need of the bank to finance if people fund will not be paid back talk less of earning profit. Government are the one that now have to stream line for the SMEs sector or give bank at least assurance of it principal and at least 70% of the profit.
If you are in financial sector you will see a lot of insincerity. Even the profit banking that has no compound interest the SMEs are still defaulting massively creeping the financial system. Time is hard, we all agreed but there should be dignity and ability to meet up our obligation even if not in due time but a short moment after due time at least.
Yes SMEs is part of the driving force of the economy but they are also dangers to the financial institutions in the long run due to economic challenges and people bad character to pay loans. Let not even start talking about agriculture and finance.

Thank You.

FreeStuffsNG:
The Senate is perfectly in order.

The money doesn't belong to the banks!! It's money created by the CBN's unification of the forex in both official and parallel markets.

May God bless Nigeria for ever! Check my signature for free stuffs!

Ohhhhh before we were saying this to you guys earlier and you were listing bank gains as one of Tinubu's achievements. And FYI it is the bank's money as this is profits made from their business operations.

OboOlora:
Akpabio will go down as the most useless Senate President in the history of Nigeria.
So pompous and uncouth, almost playing the role of a President.
Oloshi, oloko dogidogi oshi

illiterate didn’t even understand the write up.

If you smart summarized what they wrote up there. Ishie

My opinion.. I see this as criminality on the part of the govt! Banks just like every other business is out to make profit for its shareholders and
they will do that in whatever way or loophole available to them.

Currency speculation and trading is what the investment banking arm of every bank does and making profits out of the the ill advised floating of the naira by this government is just one of the available loophole. This windfall tax can only be described as one thing, punishment and mafia style taxation on these banks.

The government should simply take their L and learn never to issue policies without seriously running a stress test of the policy before its issued. This mafia style taxation will send a wrong signal to the wider investment community both locally and internationally.

Plus in case of next time, this mafia style taxation will push the banks into a smarter way of cooking their books/report and never report such profits to the public anymore.

Tinubu will soon begin to tax us for looking at the sun and even allowing rain fall on our roofs😂

kingsways:
This is madness

If you tax FX profits what happens to FX Loss?

What if subsequently the bank suffer FX losses


Again all Naira denominated assets of these banks have taken a big hit in Dollar and real terms as a result of crash in Naira value

They are only looking at profit....
All those manufacturing coys that declared huge losses...
As a result of govt policies on xchange rate should bring it up...
Some even have negative shareholders fund as a result of the same policy...
Let them share the loss too using 70% ratio....

The FG and the sente should know banks have spent this money oo.

They have paid bonus and dividend! Any tax will be paid on earnings from this year!

The CBN is also asking banks to increase their paid-up capital! Make dem no kill banks oooo

fantastic move, the banks have been parasites on the forex system for decades. they dont do any lending to real businesses, they just focus on roundtripping and government accounts.

pipnator00:
My opinion.. I see this as criminality on the part of the govt! Banks just like every other business is out to make profit for its shareholders and
they will do that in whatever way or loophole available to them.

Currency speculation and trading is what the investment banking arm of every bank does and making profits out of the the ill advised floating of the naira by this government is just one of the available loophole. This windfall tax can only be described as one thing, punishment and mafia style taxation on these banks.

The government should simply take their L and learn never to issue policies without seriously running a stress test of the policy before its issued. This mafia style taxation will send a wrong signal to the wider investment community both locally and internationally.

Plus in case of next time, this mafia style taxation will push the banks into a smarter way of cooking their books/report and never report such profits to the public anymore.

There is a reason this type of tax has a name! It is a windfall tax. Nigeria will not be the first country to tax companies that makes extra profit due to circumstances beyond normal operations. So, it is no criminal.
The govt is trying to make up taxes they lost to manufacturing companies declaring loses due to FX issues.

LegacyB:
You cant just please Nigerians. They are worse and stubborn than the children of Isreal during Moses time in the Bible. Taxing these Banks that have been reaping where they did not sow is very commendable. I wish they could even pay tax in arrears form 2021.In an economy struggling you see Banks declaring profit of over 300billon….. How come? Na ghost they patronize them?

Only if the people complaining about this knows how much the banks have already made from the taxed amount sitting in their vaults.....they would know they deserve it

muhammad4islam:

The problem is not the bank but the SME's sectors. Most of the SME's don't pay back loan in due time or at all. They will start bringing economic challenges putting the banks in a state of quagmire. All the grant and intervention funds all down the drain (some are wrong targets and others are just pure insincerity from SME business).
Hence, what is the need of the bank to finance if people fund will not be paid back talk less of earning profit. Government are the one that now have to stream line for the SMEs sector or give bank at least assurance of it principal and at least 70% of the profit.
If you are in financial sector you will see a lot of insincerity. Even the profit banking that has no compound interest the SMEs are still defaulting massively creeping the financial system. Time is hard, we all agreed but there should be dignity and ability to meet up our obligation even if not in due time but a short moment after due time at least.
Yes SMEs is part of the driving force of the economy but they are also dangers to the financial institutions in the long run due to economic challenges and people bad character to pay loans. Let not even start talking about agriculture and finance.

Thank You.

You are right.

But this again is the fault of the banks. Their credit screening methods are too collateral based. Why would you take collateral of a building that you will struggle to sell in the event of a default? What happened to cash flow loans with the debit being across any BVN linked account?

Take a school for instance. It has recurrent income and it's costs are fairly fixed. Free cash flow can be calculated easily while ensuring enough headroom for repayments.

Banks can develop a default reporting system that is accessible by embassies. Watch default rates shrink.

It's about being imaginative. But why should they when they can make easy money on transaction and monthly charges?

Tax their windfall fx profits. 70% is fine.