Global tax and advisory service firm, KPMG Nigeria has criticised the 50% windfall tax on the bank’s foreign exchange revaluation gains recorded in 2023 stating that it could result in a legal dispute.  

The firm stated this in its reaction to the recently imposed tax on banks by the federal government where it stated that current revenue challenges of the government may have triggered the tax.  

According to the firm, Nigeria’s tax policy does not support retroactive taxation and since most banks have settled their tax liabilities for the financial year of 2023, it could lead to a constitutional crisis since it runs counter to the principle of legitimate expectations.