Otedola, Elumelu’s Support For Windfall Tax Does Not Reflect Banks’ Collective Stance, Says Chike-Obi

Bank Directors Association of Nigeria (BDAN) Chairman, Mustafa Chike-Obi, has announced that the “banking community” will soon release its official position on the contentious windfall tax imposed on banks by Nigeria’s federal government.

Chike-Obi made this known in a tweet from his X (formerly Twitter) handle on Friday. He said that personal views expressed by some bank chairmen on the matter do not represent the collective stance of the banking community.

Chike-Obi said, “I have read the personal views of some bank chairmen on the windfall tax issue. Those views do not represent the banking community.”

To address the issue, Chillke-Obi revealed that BDAN would convene a board meeting on August 12 to discuss the windfall tax issue and other pressing concerns affecting the banking sector.

Chike-Obi assured, “BDAN will communicate its views after our board meeting on the 12th, on this and other very important issues concerning our community.”

Recall that in the past few days, Chairman FBN Holdings Femi Otedola and Chairman UBA Tony Elumelu have both voiced their support for the windfall tax.

Billionaire businessman Otedola threw his weight behind the implementation of the windfall tax, emphasizing its role in fostering a fairer economic environment.

“Taxing these extraordinary gains ensures a fairer distribution of wealth, allowing those who benefit disproportionately to contribute more significantly to the broader societal good,” he said.

“‘The recent announcement of a windfall tax on the extraordinary profits earned by Nigerian banks is a significant first step towards achieving these goals…This extraordinary gain should be redistributed to fund critical infrastructure development, education, healthcare access, and public welfare initiatives,” Otedola 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,” Otedola said.

 Elumelu aldo approved of the move, saying it was aimed at alleviating poverty.

The businessman and philanthropist said there was a need to “democratise prosperity for Nigerians, ensuring access to a good life for all”.

 This followed a meeting that government held on Wednesday with banking sector representatives, led by Elumelu and GCEO of FCMB, Ladi Balogun, to discuss the windfall tax.

The meeting was described as “amicable, knowledge-based, and data-driven” by Finance Minister Wale Edun, who noted that President Bola Tinubu was actively engaged in the discussion.

“‘We sat and we talked about the importance of the banking system and the importance of the financial system as a whole at this critical time,” Edun said.

“‘Of course, we know at this time that the banking system is raising money. They’re selling shares, they’re giving people opportunity to participate in their wealth, and that includes foreign investors.

“So it’s against that background that Mr. Elumelu and Mr. Balogun wanted some clarifications, particularly on the windfall levy that has just been passed by the National Assembly,” Edun added.

The meeting provided a platform for the banking sector to share their perspective, with assurance and support for the President’s reforms.

According to Elumelu, “We support the government’s intention to alleviate poverty with the windfall tax, but we also believe that no one segment should suffer, and the government should continue to create jobs while businesses thrive,” he said.

“‘Mutual prosperity is key – prosperity for business owners, ordinary Nigerians, and foreign and local investors. Everyone should be happy. I’m pleased with the meeting’s outcome, and I hope for a better and happier society going forward,” Elumelu added.

Boluwatife Enome

Boluwatife Enome

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