Nigeria’s banking sector representatives on Wednesday met formally with President Bola Tinubu at the State House, Abuja, to seek clarifications on the recently imposed Windfall Levy.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, as well as the team, including the Chairman of the United Bank for Africa (UBA), Tony Elumelu, and the Group Chief Executive Officer (GCEO) of the First City Monument Bank (FCMB), Ladi Balogun, we’re at the ‘crucial’ meeting with the President.
Addressing newsmen after the meeting, Finance Minister, Edun, disclosed that the bankers representatives requested for details of the tax regime, particularly the Windfall Levy, passed by the National Assembly.
According to him, Chairman of Federal Inland Revenue Service (FIRS), Zacch Adedeji, explained the government’s intention to simplify the tax regime, focus on taxing profits, and leave companies’ capital alone to grow.
The discussion also centered on the banking system’s windfall profits and the government’s decision to distribute wealth across Nigerian society.
Edun described the meeting as amicable, knowledge-based, and data-driven, with President Tinubu, an accountant and financial expert, actively engaged in the discussion.
He stated that the bankers are expected to share their perspective on the outcome, which included assurance on all sides and support for the President’s macroeconomic reforms.
His words: “Two top bankers, Mr. Tony Elumelu of UBA and Mr. Ladi Balogun of FCMB wanted to have with Mr. President in company of, amongst others, the chairman FIRS, and special advisor to Mr. President on revenue, Mr. Zacch Adedeji. And we sat and we talked about the importance of the banking system and the importance of the financial system as a whole at this critical time for encouraging investments, portfolio investments, into the stock market and government securities, as well as foreign direct investment.
“Of course, we know at this time that the banking system is raising money. They’re selling shares, they’re giving people opportunity to participate in their wealth, and that includes foreign investors. So it’s against that background that Mr. Elumelu and Mr. Balogun wanted some clarifications, particularly on the windfall levy that has just been passed by the National Assembly.
“Chairman of FIRS gave some insight, particularly into the fact that under President Bola Ahmed Tinubu, the idea is to simplify the tax regime, as much as possible, make it more efficient and less costly for people to even file their taxes and critically to focus on the wealth that’s created, not to focus on the companies that maybe are not doing so well, or to focus on their capital, to leave their capital alone, to grow and make sure that the emphasis is on taxing and levying only the returns, only the profits.
“In this particular case, as we know, the banking system has enjoyed some, what we’ll call windfall or on hand profits and in the interest of distributing wealth across the Nigerian society, the government has stepped in to take some of that wealth on behalf of Nigerians.
“So that was what the discussion was all about. It was very amicable and it was very knowledge-based and data-driven discussion, which Mr. President as a financial man, as an accountant, easily understood, followed, and appreciated.
“I think the bankers themselves will give what they see as the outcome because it wasn’t just one item, it was assurance on all sides. They explained the extent to which Mr. President’s macroeconomic reforms are being supported and are being accepted by, not just Nigerian investors, but the international community. So on that note, over to the bankers”.
On his part, Elumelu expressed the need to democratize prosperity for Nigerians, ensuring access to a good life for all, expressing support for the government’s Windfall Levy, which he said is aimed at alleviating poverty.
The UBA Chairman stressed the importance of mutual prosperity, where businesses thrive, jobs are created, and investors – both foreign and local – benefit, ultimately leading to a happier society.
Elumelu believed the meeting achieved its objective of creating a prosperous perspective for all Nigerians, and he looks forward to a better future.
According to him: “We believe in prosperity. We believe in creating jobs and employment for our people. We believe in making sure that we democratize prosperity and that Nigerians have access to good life. So today we spoke about the Windfall Tax. We support the government.
“We believe that where extraordinary income has made a part of, 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 we should make sure that no one segment suffers and that the government is able to continue to create jobs and that businesses are also able to do well because we need mutual prosperity.
“Prosperity of the business owners, prosperity of the ordinary, Nigerians perspective of the investors – foreign and local, so that everyone is happy. So I’m happy that the meeting has gone very well.
“The ultimate objective is to make sure that we create perspective for everyone in Nigeria and I think that has been achieved on the meeting and we hope to see a better and happier society going forward”, he said.
Also speaking, FCMB boss, Balogun, expressed confidence that the current administration will continue to support all stakeholders in the economy, promoting growth and investment.
He amatressed the importance of aligning the banking sector and investment community with the government’s reform agenda.
Balogun also highlighted the banking industry’s role in channeling gains back into the economy, demonstrating their commitment to supporting economic growth, praising the administration’s pro-investment and pro-growth stance, evident in their willingness to listen to industry concerns.
“As mentioned by the Honorable Minister, the purpose of the meeting was really to ensure that the reform agenda of this government is well transmitted to not only the banking sector, but the investment community. We sought to ensure that we are all on the same page. I believe we are in the banks and the government.
“We also sought to ensure that we are also playing our role as a banking system, as an industry, to be able to channel back some of the gains that we have made into the general economy. Now we believe that this government and this administration is very much pro-investment, is very much pro-growth and they demonstrated that in listening to the concerns of the industry.
“We believe that what we are seeing is a government that will continue to support all stakeholders in this economy and promote growth in the economy. I believe that was the strongest message that came out today”, Balogun further said.
Deji Elumoye
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