Chairman of FBN Holdings, Femi Otedola, has suggested that Nigerian banks reduce their extravagant spending, such as on private jets, and contribute to a new windfall tax to rebuild public confidence and bolster the economy.
In an email sent to Bloomberg, Otedola stated that Nigerian banks reportedly spend around $50 million per year to maintain private jets. Furthermore, he mentioned that four banks have collectively spent over $500 million on purchasing nine private jets.
“This level of extravagance significantly erodes public trust in our financial institutions and diverts crucial resources away from vital areas.”
He indicated his strong endorsement for the proposed 70 per cent windfall tax on banks’ realised profits from foreign exchange gains.
Guaranty Trust Bank, the largest lender in the country by market value, saw its profits surge to 539.7 billion naira in 2023, driven by revaluation gains. FBN’s net income increased by over 100 per cent to 307.22 billion nairas.
“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.
He added, “The revenue generated from windfall taxes can be channelled into essential public services such as health care, education, and infrastructure.”
He indicated his strong endorsement for the proposed windfall tax of 70 percent on banks’ realized profits from foreign exchange gains. Guaranty Trust Bank, the largest lender in the country by market value, saw its profits surge to 539.7 billion naira ($326 million) in 2023, driven by revaluation gains. FBN’s net income increased by over 100 percent 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.