“I am particularly critical of the culture of flamboyance, especially the ownership and operation of private jets.”
Femi Otedola, the Chairperson of FBN Holdings and an influential figure in the Nigerian financial and capital markets, has expressed support for the Bola Tinubu administration over a new policy to impose windfall tax on Nigerian banks.
In a statement he sent to PREMIUM TIMES on Wednesday afternoon, the billionaire businessman and majority shareholder of Geregu Power Plc, a power generating company, also descended heavily on bank officials in the country, accusing them of profligacy and extravagant spending, including the purchase and maintenance of private jets.
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“A concerning trend has emerged where some bank chief executives prioritize personal gain over their duty to shareholders and customers,” Mr Otedola said. “The core values of banking—trust, integrity, and service—must be upheld. I am particularly critical of the culture of flamboyance, especially the ownership and operation of private jets.
“Nigerian banks are spending an estimated $50 million annually just on maintaining private jets, with over $500 million gone into purchasing nine private jets by four banks.
“This level of extravagance significantly erodes public trust in our financial institutions and diverts crucial resources away from vital areas such as operational efficiency, technological innovation, and customer service.
“To regain the trust of the Nigerian public and fulfil its pivotal role in the nation’s economic development, the banking sector must realign its financial priorities. Investments should be channelled into areas that directly improve customer services and enhance technological infrastructure.”
President Tinubu wrote the Senate this month, asking lawmakers to amend the 2023 Finance Act to accommodate a windfall tax on the foreign exchange gains after a devaluation of the naira last June and this January bloated revaluation gains for banks holding assets in foreign currencies.
While the president sought approval for half of lenders’ FX gains to be charged as windfall tax, senators last Wednesday upped the rate to 70 per cent.
The push is part of the government’s plan to boost public finances in the face of a sticky cost of living crisis in Africa’s most populous nation.
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