Femi Otedola, chairman of FBN Holdings, has urged Nigerian banks to reduce their lavish spending, including on private jets, and support the economy by paying a new windfall tax.
In a statement to Bloomberg, Otedola highlighted that Nigerian banks spend around $50 million annually on maintaining private jets and have invested over $500 million in acquiring nine jets. He believes this excess spending undermines public trust and diverts funds from crucial needs.
Otedola also endorsed a 70% windfall tax on banks’ profits from foreign exchange gains. He pointed out that Guaranty Trust Bank, Nigeria’s largest lender by market value, saw its profit soar to 539.7 billion naira ($326 million) in 2023, largely due to revaluation gains. FBN’s net income also more than doubled to 307.22 billion naira.
“Taxing these extraordinary gains ensures a more equitable distribution of wealth,” Otedola said. “The funds from this tax could be used to enhance essential public services like healthcare, education, and infrastructure.”
