Windfall tax: Nigerian banks spent $500m on private jets — Otedola

Femi Otedola, chairman of FBN Holdings has called on Nigerian banks to pay a new windfall tax to regain public trust and support the economy, saying this could be done by scaling back their flamboyancy, including spending on private jets.

According to the Nigerian billionaire businessman, just four Nigerian banks spent over $500 million on purchasing private jets.

Otedola, in an emailed statement to Bloomberg, said: “Nigerian banks are spending an estimated $50 million annually just on maintaining private jets, with over $500 million 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.”

Expressing his his “strong support” for the windfall tax of 70 per cent on realised profits by banks from foreign exchange gains, Otedola said the revenue generated through the taxing can be channelled to essential public services.

The profit of Guaranty Trust Bank, the country’s biggest lender by market value, more than tripled in 2023 to 539.7 billion naira ($326 million), driven by the revaluation gains.

Net income for FBN more than doubled 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.

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