Billionaire businessman Femi Otedola in a statement issued on Wednesday, Otedola, has faulted the excessive spending of Nigerian banks on private jets, a practice he believes undermines public trust and diverts resources from critical areas.
Otedola, who is the chairman of FBN Holdings revealed that Nigerian banks are estimated to spend $50 million annually on maintaining private jets, with four banks having collectively spent over $500 million to purchase nine private jets. He criticized this level of extravagance, stating that it erodes the core values of banking, such as trust, integrity, and service.
“In the midst of ongoing banking sector reforms, it is crucial to address deep-rooted issues within the Nigerian banking sector,” Otedola said. “A concerning trend has emerged where some bank chief executives prioritize personal gain over their duty to shareholders and customers. The culture of flamboyance, particularly the ownership and operation of private jets, must be addressed.”
Otedola, who also chairs Geregu Power, argued that the proposed windfall tax is a step towards ensuring a fairer distribution of wealth. The tax, recently passed by the Senate following an amendment to the 2023 Finance Act, aims to redistribute extraordinary foreign exchange gains made by banks due to FX market reforms. Otedola emphasized that the revenues generated from this policy should be channeled into essential public services such as healthcare, education, and infrastructure, which would benefit all citizens and help reduce social inequalities.
He also noted that aligning financial priorities with Nigeria’s broader economic development goals is essential for the sustainable growth of the economy. “To regain the trust of Nigerians and fulfill its pivotal role in the nation’s economic development, the banking sector must realign its financial priorities,” Otedola said.
