AFRICA

Otedola Supports Nigeria’s Windfall Tax, Condemns Bank Execs For Flaunting Wealth, Owning Private Jets

Billionaire businessman Femi Otedola has expressed his support for the implementation of a windfall tax in Nigerian banks, highlighting its significance in promoting a fairer and more equitable economic environment.

In a statement released on Wednesday, Otedola underscored the importance of this measure, particularly in light of recent reforms in the Nigerian banking sector. “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 stated.

Otedola pointed out that the revenue generated from windfall taxes could be directed towards essential public services such as healthcare, education, and infrastructure. This, he argued, would benefit all citizens and help reduce social inequalities. 

“The recent announcement of a windfall tax on the extraordinary profits earned by Nigerian banks is a significant first step towards achieving these goals,” Otedola added.

Otedola then noted that the consolidation of various foreign exchange rate systems into a single investors and exporters (I&E) window led to the depreciation of the Naira and a substantial increase in the value of bank assets denominated in United States Dollars, stressing that these extraordinary gains should be redistributed to fund critical infrastructure development and public welfare initiatives. 

“This extraordinary gain should be redistributed to fund critical infrastructure development, education, healthcare access, and public welfare initiatives, addressing the intense pressure on public finances and alleviating the cost-of-living crisis many Nigerians face,” he asserted.

Otedola also critiqued the banking sector’s current practices, particularly the extravagant spending on private jets by bank executives. “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,” he remarked.

He called for a shift in financial priorities, urging banks to focus on operational efficiency, technological innovation, and customer service rather than personal gain. “The core values of banking—trust, integrity, and service—must be upheld. It is crucial for banks to focus on operational efficiency, technological innovation, and customer service, rather than executive extravagance,” Otedola said.

The businessman also lauded recent recapitalisation initiatives in the banking sector, which set minimum capital requirements of N500 billion for international banks and N200 billion for national banks. He described these reforms as timely and essential for the sustainable growth of Nigeria’s economy.

Otedola then emphasised the need for ethical leadership and accountability within the banking sector. “By taking decisive action to implement these changes, the Federal Government is demonstrating a commitment to ethical leadership and accountability. These reforms will empower our banking sector to play a pivotal role in driving Nigeria’s economic development, ultimately securing a prosperous future for all Nigerians,” he said.

Ozioma Samuel-Ugwuezi 

Follow us on:

AriseNews

Recent Posts

Federal Government Reinstates Ikechebelu as Acting Vice-Chancellor of UNIZIK

The federal government has reinstated Professor Joseph Ikechebelu as acting Vice-Chancellor of UNIZIK, nullifying Professor…

2 hours ago

Court Of Appeal Nullifies Judgment Blocking Voter Register Release For Rivers LG Polls

Court of Appeal has overturned the Federal High Court ruling barring INEC from releasing voter…

2 hours ago

Kenya Cancels Adani Contracts as US Prosecutors Charge Tycoon with Fraud

Kenya has cancelled airport and energy deals with Adani following US bribery and fraud charges…

2 hours ago

Brazil’s Former President Bolsonaro, 36 Others Indicted Over Alleged Coup Attempt In Brazil

Brazil’s former president Bolsonaro and 36 others have been indicted for allegedly attempting a coup…

2 hours ago

Republican David McCormick Triumphs As Democrat Sen. Bob Casey Concedes After Recount

Republican David McCormick won Pennsylvania Senate seat as Democratic Sen. Bob Casey concedes after recount…

2 hours ago

Trudeau Announces Temporary Tax Relief and Cheques Amid Rising Living Costs

Trudeau's government has announced plans for temporary tax relief, cheques for Canadians amid rising costs…

2 hours ago