Economy
Windfall tax: FG insists on sanctions for defaulting bank chiefs
The Federal Government has reiterated that the principal officers of banks who refuse to comply with the law on the windfall tax on banks’ foreign exchange profits will be sanctioned.
The government’s position was reiterated on Monday at the National Assembly when the Minister of Finance, Wale Edun, and the Chairman of the Federal Inland Revenue Service, Zack Adediji, met with the finance committees of both chambers on the Amendment of the Finance Bill, 2024.
Last week Wednesday, the Senate gave expeditious passage to President Bola Tinubu’s request to amend the Finance Act to impose a one-time windfall tax on banks’ foreign exchange profits in 2023.
A windfall tax is a higher tax levied by the government on sectors or businesses that have disproportionately benefited from favourable market conditions.
The President said the money would be part of the revenue used to fund the additional N6.2tn added to the 2024 budget.
The bill which has passed the second reading states, “The Federal Inland Revenue shall assess the realised profits, collect, account, and enforce payment of levy payable under section 30 in accordance with the powers of the Service under the Federal Inland Revenue Service (Establishment) Act 2007; and in the exercise of its functions in 32(a) above, may enter into a deferred payment agreement with the assessed banks, provided that such deferred payment agreement is executed on or before December 31, 2024.
“Any bank that fails to pay the windfall profit levy to the service and has not executed a deferred payment agreement before December 31, 2024, commits an offence and shall, upon conviction, be liable to pay the windfall profit levy withheld or not remitted in addition to a penalty of 10 per cent of the levy withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria minimum rediscount rate and imprisonment of its principal officers for a period of not more than three years.
“Financial year means either the year commencing from January 1, 2023 to December 31, 2023, or any period within the financial year not aligned with the calendar year comprising twelve calendar months of the bank’s financial activity,” it added.
Speaking at the meeting, Edun said, the “bank windfall” profit levy, though small still constituted an important contribution to government finances at a time when revenues had substantially increased despite minimising taxes.
In his explanation, the FIRS chairman explained that the windfall tax was not a new tax imposed on banks.
Adedeji said, “These are the gains that you have without any contribution from you, without any value addition. They result from the effect of an adverse activity on others. And who are these others? If you look at the report of all manufacturing entities in the last one and a half years, you will discover that a lot of registered companies recorded huge losses from exchange transactions.
“Anywhere in the world, your duty as the government is to redistribute the wealth to sustain the progress and prosperity of the nation.
“So the loss suffered by manufacturing, as a result of these foreign gains, which is being recorded in the bank is what the government seeks to redistribute. And that is why we have this levy.
“So we seek your permission and your understanding in balancing this economic inequality that has occasioned due to the circumstances that we find ourselves.”
Speaking on the sharing formula, the FIRS chairman proposed that it be distributed 50/50 between banks and the government.
He said, “These gains that are realised, the levy proposal today is 50 (per cent) for the bank and 50 (per cent) for the government.”
Raising the issue of penalty as stated in the bill, Senator Isah Jibrin ( APC, Kogi East), asked that the bill be more explicit.
He said, “My area of worry is concerning the penalty, we need to be very explicit on it.
“On the issue of penalty, here it is stated, 10 per cent of the tax withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria MRR. So what are we going to do? 10 per cent is like coming from nowhere, so I would suggest that we align the MRR.”
“Then at what point does the issue of imprisonment of the officials come in? At what point do we now say, okay, enough is enough and the officials should be arrested after default, is it after a month, a year, two years, or three years.”
Responding to this, Edun said it was unlikely that banks would defy the government, but noted there were penalties for those who defaulted.
The finance minister said, “To be fair to the banks there is no reason to assume that’s what they trying to do. Let us give the benefit of the doubt to one another.
“Well there has to be, there has to be something that will serve as a deterrent. The penalties have to be there. And at the end of the day, tax evasion is a criminal offence.
“For underreporting of profits by the bank, we have enough technical ability to look at what the bank’s audited accounts say and track the level of foreign exchange and the profits therefrom.”
Adedeji also allayed fears regarding possible cases of underreporting.
He noted that the CBN in a memo in September 2023 and March this year had directed commercial banks in the country not to touch or spend the profits they made from foreign exchange transactions.
Current Black Market Dollar (USD) To Naira (NGN) Exchange Rate
As of Tuesday, May 13, 2025, the exchange rate for the U.S. dollar to the Nigerian naira at the Lagos Parallel Market commonly known as the black market or Aboki FX—stands as follows:
Buying Rate: ₦1,630 per dollar
Selling Rate: ₦1,635 per dollar
This information is based on data obtained from traders at Bureau De Change (BDC) outlets in Lagos.
Important Notice:
The Central Bank of Nigeria (CBN) does not recognize the black market as an official channel for foreign exchange transactions. Individuals and businesses seeking to access forex are advised to go through authorized financial institutions, such as commercial banks.
Dollar to Naira – Black Market Rate Today
Exchange Type Rate (₦)
Buying ₦1,630
Selling ₦1,635
Dollar to Naira – CBN Official Rate
At the Central Bank of Nigeria’s official window, the dollar exchanged at varying rates today:
Highest Rate: ₦1,610
Lowest Rate: ₦1,597
Note:
Foreign exchange rates may differ depending on location, volume, and the dealer. The figures provided here are for informational purposes and may not reflect the exact rates offered to buyers or sellers in real-time.
The Central Bank of Nigeria, in collaboration with the Nigeria Inter-Bank Settlement System, has launched the Non-Resident Bank Verification Number platform, an initiative aimed at enhancing financial access for Nigerians in the diaspora.
The platform, which enables Nigerians abroad to obtain their Bank Verification Number remotely, removes the need for physical presence in Nigeria.
Speaking at the event in Abuja on Tuesday, CBN Governor, Mr. Olayemi Cardoso, described the platform as a key milestone in the country’s financial inclusion journey.
He noted that the NRBVN would ease the long-standing challenges faced by Nigerians in the diaspora who previously had to be physically present in Nigeria for BVN registration.
“For too long, many Nigerians abroad have faced difficulties accessing financial services at home due to physical verification requirements,” Cardoso said. “The NRBVN changes that. Through secure digital verification and robust Know Your Customer processes, Nigerians worldwide will now be able to access financial services more easily and affordably.”
The governor added that the NRBVN was not just a solution for financial access, but a step towards a more inclusive, innovative, and prosperous financial ecosystem.
“We are building a secure, efficient, and inclusive financial ecosystem for Nigerians globally,” he remarked. “This platform is not just about financial access, it’s about national inclusion, innovation, and shared prosperity.”
Cardoso also highlighted the growth in remittance flows, which increased from $3.3bn in 2023 to $4.73bn in 2024. He attributed this rise to recent reforms, including the introduction of the willing buyer, willing seller FX regime.
With the launch of the NRBVN, the CBN is targeting $1bn in monthly remittances.
“With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1bn in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels,” Cardoso said.
The event also featured a presentation by the Managing Director/CEO of NIBSS, Mr Premier Oiwoh, who detailed the technical and operational aspects of the NRBVN platform.
Oiwoh emphasised that the platform adheres to global standards, incorporating stringent Anti-Money Laundering and KYC compliance protocols to ensure transparency and security.
The Deputy Governor, Economic Policy, CBN, Mr Muhammad Abdullahi, also addressed the gathering, describing the NRBVN as a transformative tool for enhancing the banking experience for Nigeria’s diaspora.
He urged stakeholders to collaborate in refining the platform to meet the evolving needs of the diaspora community.
He further emphasised that the initiative would strengthen economic ties between Nigeria and its global citizens, and ultimately drive sustainable economic growth.
“Together, we stand at the threshold of a new era, poised to deepen the trust, enhance remittance growth, and forge a stronger, more meaningful connection between Nigeria and its global citizens,” Abdullahi said.
The NRBVN platform is part of a broader framework that includes the Non-Resident Ordinary Account and Non-Resident Nigerian Investment Account, which provide Nigerians in the diaspora with access to savings, mortgages, insurance, pensions, and investment opportunities in Nigeria’s capital markets.
Under current regulations, diasporans will have the flexibility to repatriate the proceeds of their investments.
The launch of the NRBVN platform marks a crucial step in the CBN’s efforts to improve financial inclusion and harness the economic potential of Nigeria’s diaspora.
Below is the black market exchange rate for the US Dollar to Naira as of Sunday, May 11, 2025. These are the rates at which you can exchange your dollars for naira.
Black Market Dollar to Naira Exchange Rate (Aboki FX)
According to sources at the Bureau De Change (BDC) in Lagos, the dollar was bought at ₦1625 and sold at ₦1630 on Sunday, May 11, 2025.
Important Notice:
The Central Bank of Nigeria (CBN) does not officially recognize the parallel market, also known as the black market. The CBN advises anyone seeking foreign exchange to do so through their commercial banks.
Dollar to Naira Exchange Rates Today
Market Type Buying Rate Selling Rate
Black Market (Aboki) ₦1625 ₦1630
CBN Official Rate ₦1608–₦1614 –
Please note: Exchange rates may differ depending on the vendor or location, and the rates presented here might vary slightly from the actual rate at the point of transaction.
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