Femi Otedola Advocates for Windfall Tax, Urges Banks to Cut Lavish Spending on private Jets

Leading businessman and financier, Femi Otedola, has thrown his weight behind the implementation of a windfall tax on Nigerian banks, stressing its importance in promoting economic stability and equity. The billionaire also took a swipe at banks’ extravagant spending on private jets, urging them to prioritize operational efficiency and customer service.

In a statement, Otedola emphasized that windfall taxes are crucial in ensuring a fairer distribution of wealth, allowing those who benefit disproportionately to contribute more to the broader societal good. He noted that the tax, initially proposed by President Bola Tinubu at 50%, was increased to 70% by the Senate and will be in effect from 2023 to 2025.

The revenue generated from the windfall tax could be channeled towards essential public services such as healthcare, education, and infrastructure development. This, according to Otedola, would benefit all citizens and help reduce social inequalities. He also highlighted the need for the government to step in and provide support to struggling sectors such as manufacturing, telecoms, and small and medium-scale enterprises (SMEs).

Otedola commended the Federal Government’s reforms in the banking sector, which include the recapitalization initiative aimed at strengthening the sector’s capacity to support Nigeria’s economic development goals. However, he expressed concern over the culture of extravagance among some bank executives, citing estimated annual spending of $50 million on maintaining private jets and $500 million on purchasing nine private jets by four banks.

To regain public trust, Otedola urged banks to refocus their priorities on operational efficiency, technological innovation, and customer service. He called on all stakeholders in the banking sector and the broader economic community to support these reforms, emphasizing that it is time for financial institutions to embody the highest standards of integrity and service.

Otedola’s comments come as the country grapples with a cost-of-living crisis and intense pressure on public finances. The implementation of the windfall tax and banking reforms are seen as crucial steps towards addressing these challenges and promoting sustainable economic growth in Nigeria.