The Chairman, FBN Holdings, Mr. Femi Otedola, has criticised some bank chief executives who prioritise personal gains over their duty to shareholders and customers, in the process, compromising core banking values.
He particularly accused four banks of spending over $500 million on the purchase of private jets.
He said “A concerning trend has emerged where some bank chief executives prioritise personal gain over their duty to shareholders and customers.
“The core values of banking—trust, integrity, and service—must be upheld. I am particularly critical of the culture of flamboyance, especially the ownership and operation of private jets.”
Specifically, he said Nigerian banks are spending about $50 million annually, “just on maintaining private jets,” adding that over $500 million went into purchase of nine private jets by four banks.
According to him, “This level of extravagance significantly erodes public trust in our financial institutions and diverts crucial resources away from vital areas such as operational efficiency, technological innovation, and customer service.
“To regain the trust of the Nigerian public and fulfill its pivotal role in the nation’s economic development, the banking sector must realign its financial priorities.
“Investments should be channeled into areas that directly improve customer services and enhance technological infrastructure.”
The Nigerian billionaire therefore, called on all stakeholders in the banking system and the broader economic community to rally behind ongoing visionary reforms to sanitise the industry.
Otedola who is also the Chairman of Geregu Power Plc, equally expressed support for the implementation of a windfall tax in the country, noting that the move would foster a fairer and more equitable economic environment.
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.
“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 substantial increases in the value of bank assets denominated in United States Dollars.
“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 observed that the financial statements of manufacturing, telecoms, and SMEs indicate that many of these companies may not be able to pay corporate tax for the next two years, as they are currently showing negative equity.
“It is essential for the government to step in and provide support to bridge these gaps, ensuring revenue generation and fostering economic development.
“The importance of aligning financial priorities with Nigeria’s broader economic development goals cannot be overstated.
“The federal government’s reforms are both timely and essential for the sustainable growth of our economy.
“By taking decisive action to implement these changes, the federal government is demonstrating a commitment to ethical leadership and accountability”, he said.
