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The pretty remarkable result reflects the sheer magnitude of the fortune that lenders in the country continue to derive from the harsh macroeconomic trends like inflation and currency devaluation besetting manufacturers and other businesses. Gross earnings for GTCO, Nigeria’s biggest lender by market value, more than doubled to 1.4 trillion from a year ago, according to its audited earnings report issued Wednesday.
The unprecedented revaluation gains that lenders are reaping from the exchange rate volatility have prompted the Nigerian government to propose a one-off 50 per cent windfall tax to be levied on such income by banks. GTCO achieved that on the back of an aggressively hawkish stance of monetary authorities in Nigeria this year, which has sharply raised lending costs.
The financial services group completed a public offer of N400.5 billion earlier in the year, aimed at meeting a new minimum capital requirement by the central bank.