Nigerian windfall tax will likely fail to meet targets

Significance

To fund this budget, the government has also proposed imposing a one-time windfall tax on banks on their foreign exchange (forex) gains in their 2023 financial statements.

Impacts

• The budget deficit will increase next year to cover personnel costs.
• Unexpected increases in revenue from other sources could encourage the government to postpone the windfall tax to the 2024 financial year.
• The government will likely miss its overall revenue targets this year.