•We want prosperity democratized, support government on levy —Elumelu

•We’re confident of govt support’s for economic growth—Balogun

By Johnbosco Agbakwuru

REPRESENTATIVES of leaders of Nigeria’s banking sector on Monday met with President Bola Tinubu at the Presidential Villa, Abuja, to seek clarifications on the recently imposed windfall levy.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the team includes the chairman of the United Bank for Africa, UBA, Tony Elumelu; and the Group Chief Executive Officer, GCEO, of the First City Monument Bank,  FCMB, Ladi Balogun.

Speaking to State House correspondents after the meeting, the Minister of Finance, Edun, disclosed that the bankers sought insight into the tax regime, particularly the windfall levy, passed by the National Assembly.

He said the Chairman of Federal Inland Revenue Service, FIRS, Zacch Adedeji, explained the government’s intention to simplify the tax regime, focus on taxing profits, and leave companies’ capital alone to grow.

He said further that the discussion centered on the banking system’s windfall profits and the government’s decision to distribute wealth across Nigerian society.

Edun described the meeting as amicable, knowledge-based, and data-driven, with President Tinubu, an accountant and financial expert, actively engaging in the discussion.

The bankers are expected to share their perspective on the outcome, which included assurance on all sides and support for the President’s macroeconomic reforms.

He said:  “Two top bankers, Mr. Tony Elumelu of UBA and Mr. Ladi Balogun of FCMB, wanted to have with Mr. President in company of, among others, chairman of FIRS, and special advisor to Mr. President on revenue, Mr. Zacch Adedeji.

“We sat and talked about the importance of the banking system and the importance of the financial system as a whole at this critical time for encouraging investments, portfolio investments, into the stock market and government securities, as well as foreign direct investment.

“Of course, we know at this time that the banking system is raising money. They’re selling shares, they’re giving people opportunity to participate in their wealth, and that includes foreign investors.

”So it’s against that background that Mr. Elumelu and Mr. Balogun wanted some clarifications, particularly on the windfall levy that has just been passed by the National Assembly.

“Chairman of FIRS gave some insight, particularly into the fact that under President Bola Ahmed Tinubu, the idea is to simplify the tax regime as much as possible, make it more efficient and less costly for people to even file their taxes and critically to focus on the wealth that’s created, not to focus on the companies that maybe are not doing so well, or to focus on their capital, to leave their capital alone, to grow and make sure that the emphasis is on taxing and levying only the returns, only the profits.

“In this particular case, as we know, the banking system has enjoyed some, what we’ll call windfall or on-hand profits and in the interest of distributing wealth across the Nigerian society, the government has stepped in to take some of that wealth on behalf of Nigerians.

“I think the bankers themselves will give what they see as the outcome because it wasn’t just one item, it was assurance on all sides. They explained the extent to which Mr. President’s macroeconomic reforms are being supported and are being accepted by, not just Nigerian investors, but the international community. So on that note, over to the bankers,” Edun said.

Also speaking, Elumelu expressed the need to democratize prosperity for Nigerians, ensuring access to a good life for all,.

He also expressed support for the government’s windfall levy which, according to him, is aimed at alleviating poverty.

“We believe in prosperity. We believe in creating jobs and employment for our people. We believe in making sure we democratize prosperity and that Nigerians have access to good life. So today (yesterday), we spoke about the windfall tax; we support the government.

“We believe that where extraordinary income has made a part of, it should go towards helping to alleviate poverty in the country, which is what the government intends to do.

“We support that and we just believe that we should make sure no one segment suffers and that the government is able to continue to create jobs and that businesses are also able to do well because we need mutual prosperity.”

On his part, FCMB boss, Balogun, expressed confidence that the current administration would continue to support all stakeholders in the economy, promoting growth and investment.

He emphasized the importance of aligning the banking sector and investment community with the government’s reform agenda.

He also highlighted the banking industry’s role in channeling gains back into the economy, demonstrating their commitment to supporting economic growth, praising the administration’s pro-investment and pro-growth stance, evident in their willingness to listen to industry concerns.

“As mentioned by the minister, the purpose of the meeting was really to ensure that the reform agenda of this government is well transmitted not only to the banking sector but also the investment community.

”We sought to ensure that we are all on the same page. I believe we are in the banks and the government.

“We also sought to ensure that we are playing our role as a banking system, as an industry, to be able to channel back some of the gains we have made into the general economy.

”Now, we believe that this government is very much pro-investment, very much pro-growth and demonstrated its listening to the concerns of the industry,” Balogun said.