President Bola Tinubu has written to the Senate requesting an increase in the 2024 appropriation act by N6.2 trillion, from N28.7 trillion to N34.9 trillion.
Senate President Godswill Akpabio read President Bola Tinubu’s letter on the floor of the upper legislative chamber on Wednesday. In the letter, Tinubu proposes allocating N3.2 trillion for infrastructure projects and N3 trillion for recurrent expenditure.
“Pursuant to section 58 (2) of the Constitution of the Federal Republic of Nigeria as amended, I forward herewith the above-named bills for consideration and passage by the Senate. The appropriation act amendment bill seeks to amend the principal act to provide the sum of N3,200,000,000,000 for Renewed Hope Infrastructure Projects and other critical infrastructure projects to be undertaken across the country and the sum of N3,000,000,000,000 to meet further recurrent expenditure requirements necessary for the proper operation of the federal government,” the letter reads.
Tinubu urged the National Assembly to amend the Finance Act of 2023, specifically targeting windfalls generated by banks from “foreign exchange gains.” His request aims to ensure a fair taxation policy to address the profits banks accrue due to fluctuations in foreign exchange rates, which will fund capital infrastructure development, education, healthcare access, and public welfare initiatives.
“Furthermore, the proposed amendments to the Finance Acts 2023 are required to impose a one-time windfall tax on the foreign exchange gains realized by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare as well as welfare initiatives, all of which are components of the Renewed Hope Agenda,” Tinubu said.
According to data from Nairalytics, top Nigerian banks raked in a profit of N3.3 trillion in 2023, mostly arising from forex revaluation gains. In 2023, the top seven local banks earned N2.48 trillion, while in the first quarter of 2024, they amassed N882.9 billion.