Nigerian Billionaire Calls Out Banks for Private Jet Extravagance Amidst Worsening Cost-of-Living Crisis
A storm is brewing in Nigeria as billionaire businessman Femi Otedola took to the podium to call out the country’s top banks for their extravagant spending habits. Otedola, who is also the Chairman of First Bank Holdings, stated that Nigerian banks are annually shelling out an estimated $50 million for private jet maintenance alone, with over $500 million invested in nine luxury jets by just four banks.
According to Otedola, this excessive expenditure is not only eroding public trust in financial institutions but also diverting crucial resources away from vital areas such as operational efficiency, technological innovation, and customer service. In a recent statement, Otedola emphasized the need for the banks’ extraordinary foreign exchange gains to be redistributed towards funding critical infrastructure, education, and healthcare in order to alleviate the cost-of-living crisis afflicting many Nigerians.
This comes amidst growing concerns about the widening wealth gap in Nigeria. In July 2024, the Senate amended the 2023 Finance Act, increasing the windfall tax on banks’ foreign exchange gains from 50% to 70%. This change aims to redistribute wealth and promote fairer distribution of income. The move followed the Central Bank of Nigeria’s unification of foreign exchange windows on June 14, 2023, which led to the depreciation of the Naira and a substantial increase in dollar-denominated assets.
Otedola’s statement, made in the aftermath of top executives from Nigeria’s banking sector meeting with President Bola Ahmed Tinubu, has sent shockwaves through the industry. The Chairman’s call to action highlights the growing sentiment that something needs to change, and quickly, to address the ongoing economic challenges plaguing Nigeria.
Will the country’s top banks heed Otedola’s warning and make drastic changes to their spending habits? Only time will tell. For now, one thing is clear: the public’s gaze is fixed squarely on the nation’s financial institutions, and they’re waiting to see how this saga plays out.
