In the ever evolving landscape of Nigeria's economy, the Central Bank of Nigeria's (CBN) commendable efforts to harmonise exchange rates and curb inflation have led to a significant devaluation of the Naira.
This monetary policy shift has had a profound impact on the financial sector, particularly on banks, which have experienced a windfall due to their foreign currency holdings. However, this has also introduced a complex tax dilemma regarding the nature of these gains whether they should be considered revenue or capital.
The proposed windfall tax on Nigerian banks aims to address this issue, but it brings with it a host of challenges and implications for the banking industry, the broader economy and investors (both local and foreign).
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