Professor Adetunji Ogunyemi, an expert in economic history and public finance, has expressed support for the Nigerian government’s decision to impose a windfall levy on banks’ foreign exchange gains.
He argues that the policy is justified given the country’s current economic challenges and the need to redistribute wealth.
Ogunyemi notes that the government has the power to make laws and policies to ensure peace, good order, and good governance, as stated in the constitution.
The Professor of Economic History at the Obafemi Awolowo University, Ile Ife, believes that the windfall levy is a necessary measure to stabilize the economy and address the resource deficit in certain sectors.
Regarding concerns about uncertainty and potential double taxation, he disagrees, stating that the levy is a one-off payment and not a tax. He also points out that banks have been making huge profits from foreign exchange transactions and should contribute to the system.
Professor Ogunyemi suggests that the revenue generated from the windfall levy should be used to fund critical projects such as infrastructure development, industrial development, and agricultural projects. He also emphasizes the need for transparency and accountability in the use of the funds.
The public finance expert, decried the Chartered Institute of Bankers of Nigeria (CIBN) for opposing the windfall levy, noting that the banks have been making illegal deductions from customers’ accounts and should be contributing to the system.
He also highlights the financial injustice in the system, where states have been receiving more money since the removal of petrol subsidy but have not been giving credit to the Federal Government for the increased revenue.
The professor suggests that states should explain to their citizens why they have been receiving more money and use the funds to improve the lives of citizens.
He aligned with the recent Supreme Court judgment that allocations should be paid directly into the accounts of local government areas, stating that it will help bring down tension and enhance development at the grassroots.
Professor Ogunyemi, however, notes that there is still a need for an amendment to the Electoral Act to ensure that local government elections are conducted by INEC to ensure a level-playing field.
The windfall levy elicited some debate in the polity with government justifying it as the right thing to do in order to strike a balance in the key sectors of the economy.
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