Billionaire businessman Femi Otedola has stated that Nigerian banks spend around $50 million each year on the maintenance of private jets.
Otedola, Chairman of First Bank Holdings, made this announcement in a statement on Wednesday, expressing support for the Federal Government’s Windfall Tax on banks’ foreign exchange gains.
He argued that the newly passed 70 percent Windfall Tax, an amendment to the 2023 Finance Act approved by the Senate, will promote a fairer distribution of wealth.
Otedola, also Chairman of Geregu Power, emphasized that exceptional foreign exchange gains by banks, following FX market reforms, should be redirected to improve infrastructure, education, and healthcare, and to address the cost-of-living crisis affecting many Nigerians.
He criticized the extravagant spending on private jets, highlighting that over $500 million has been used by four banks to acquire nine jets. This level of opulence, he noted, undermines public trust in financial institutions and diverts essential resources from areas like operational efficiency, technology, and customer service.
His remarks followed a meeting between top Nigerian bank executives and President Bola Ahmed Tinubu on Wednesday.
In July 2024, the Senate approved an increase in the windfall tax rate from 50 percent to 70 percent of banks’ foreign exchange gains, prompted by the Naira’s devaluation. The Central Bank of Nigeria’s decision to unify foreign exchange windows on June 14, 2023, led to a Naira depreciation and significant increases in dollar-denominated assets.
