Nigerian banks should scale back their flamboyant, including spending on private jets, and pay a new windfall tax to regain public trust and support the economy, Femi Otedola, chairman of FBN Holdings has said.
Recall that Otedola, chairman of FBN Holdings Plc, owners of First Bank Plc, while speaking on the new windfall tax on Wednesday, said it was long overdue.
He also criticised the banks for, “The culture of flamboyance, especially the ownership and operation of private jets”.
In an emailed statement to Bloomberg, Otedola said: “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.”
He also expressed his “strong support” for the windfall tax of 70 per cent on realised profits by banks from foreign exchange gains.
The profit of Guaranty Trust Bank, the country’s biggest lender by market value, more than tripled in 2023 to 539.7 billion naira ($326 million), driven by the revaluation gains.
Net income for FBN more than doubled to 307.22 billion naira.
“Taxing these extraordinary gains ensures a fairer distribution of wealth, allowing those who benefit disproportionately to contribute more significantly to the broader societal good,” Otedola said.
“The revenue generated from windfall taxes can be channelled into essential public services such as health care, education, and infrastructure,” he said.
