In a recent statement, billionaire businessman Femi Otedola shared that Nigerian banks allocate approximately $50 million annually for the upkeep of private jets.
Otedola, who serves as the Chairman of First Bank Holdings, expressed his support for the Windfall Tax on Banks’ foreign exchange gains, recently passed by the Senate as an amendment to the 2023 Finance Act. He believes that this 70 percent tax will lead to a more equitable distribution of wealth.
Highlighting the importance of redirecting extraordinary foreign exchange gains towards critical sectors, Otedola, also the Chairman of Geregu Power, emphasized the need to channel funds towards infrastructure, education, healthcare, and addressing the challenges faced by many Nigerians due to the high cost of living.
According to Otedola, “Nigerian banks are estimated to be spending $50 million annually solely on private jet maintenance. These banks have collectively spent over $500 million to purchase nine private jets. Such excessive spending undermines public confidence in financial institutions and detracts from essential areas like operational efficiency, technological advancement, and customer service.”
Otedola’s remarks followed a meeting between top executives of Nigerian banks and President Bola Ahmed Tinubu on the same day.
In July 2024, the Senate approved an increase in the windfall tax from 50 percent to 70 percent of banks’ foreign exchange gains, triggered by the devaluation of the Naira. This decision came after the Central Bank of Nigeria unified foreign exchange windows on June 14, 2023, leading to Naira depreciation and a surge in dollar-denominated assets.