Windfall tax: Nigerian banks spend $50m yearly on private jets – Otedola

Billionaire businessman, Femi Otedola, says Nigerian banks spend an estimated $50m annually on private jet maintenance.

Otedola, the Chairman of First Bank Holdings, disclosed this in a statement on Wednesday while supporting the Federal Government’s Windfall Tax on Banks’ foreign exchange gains.

According to him, the 70 percent Windfall tax which was recently passed by the Senate upon the amendment of 2023 Finance Act, will ensure a fairer distribution of wealth.

Otedola, who is also the Chairman of Geregu Power, noted that extraordinary foreign exchange gains made by Banks due to FX market reforms should be redistributed to fund critical infrastructure, education, and healthcare and alleviate the cost-of-living crisis many Nigerians face.

“Nigerian banks are spending an estimated $50m annually just on maintaining private jets, with over $500m 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 such as operational efficiency, technological innovation, and customer service”, he said.

His statement comes after top executives of Nigerian banks met with President Bola Ahmed Tinubu on Wednesday.

Recall that in July 2024, the Senate increased the percentage of windfall tax amendment requests sent by the President from 50 percent to 70 percent of banks’ FX gain due to the Naira devaluation.

The Central Bank of Nigeria on June 14, 2023, announced the unification of Foreign exchange windows which saw the Naira depreciate, while assets denominated in dollars witnessed substantial increases.