NIGERIAN banks are reportedly spending an estimated $50 million annually on maintaining private jets, with over $500 million already spent on purchasing nine private jets by four banks.
This revelation comes from billionaire businessman Femi Otedola, the Chairman of First Bank Nigeria (FBN) Holdings, who expressed his concerns in a recent statement.
Otedola criticised the extravagant spending of bank executives, stating that it significantly erodes public trust in financial institutions and diverts crucial resources away from essential areas such as operational efficiency, technological innovation, and customer service. He urged banks to realign their financial priorities and invest in areas that directly enhance customer services and technological infrastructure.
“Amid the progress with banking sector reforms, there is an urgent need to address entrenched issues within the Nigerian banking sector. A concerning trend has emerged where some bank chief executives prioritise personal gain over their duty to shareholders and customers. 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,” Otedola stated.
He also voiced his support for the 70 percent Windfall Tax proposed by the Federal Government on foreign exchange gains of banks. In July, the Senate amended the Finance Act to impose this tax on banks’ foreign exchange profits. The revenue generated from this tax is intended to fund the N6.2 trillion supplementary budget.
Otedola argued that implementing a Windfall Tax is crucial for fostering a fairer and more equitable economic environment. He highlighted that Windfall Taxes ensure a fairer distribution of wealth by taxing extraordinary profits, allowing those who benefit disproportionately to contribute more significantly to society.
“The revenue generated from Windfall Taxes could be channelled into essential public services, such as healthcare, education, and infrastructure, benefiting all citizens and helping to reduce social inequalities,” he explained.
He added that the recent announcement of the Windfall Tax on extraordinary profits earned by Nigerian banks is a significant step towards achieving these goals.
Otedola pointed out that while many manufacturing, telecoms, and SME businesses are struggling to pay Corporate Taxes due to negative equity, the government needs to step in and provide support.
He called on banks to regain customer trust by realigning their financial priorities and investing in areas that directly improve customer services and technological infrastructure.
Source: platinumposting.com
Eighteen-Eleven Media