As the controversy over foreign exchange profit windfall tax continues, EKUNDAYO OLASUNKANMI reviews case studies of countries that have successfully leveraged the special tax to stimulate public sector performance
In recent years, Nigerian banks have reported substantial profit growth, driven by various factors including high interest rates and a booming loan market. Last year, several banks reported record earnings, with some institutions seeing profit increases of over 40 per cent compared to the previous year. While the profits indicate a robust and profitable sector, they also highlight a growing disparity between the financial health of banks and the broader economic performance – or insulate the banking sector.
The Central Bank of Nigeria’s (CBN) recent policy shifts, including adjustments to interest rates and lending regulations, have further bolstered bank profits. However, this has also intensified scrutiny…
Source: Guardian Newspaper
