• About
  • Advertise
  • Careers
  • Contact Us
Saturday, June 14, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Mobility
    • Environment
    • Travel
    • StartUPs
  • Economy
  • TECHECONOMY TV
  • TBS
  • About Us
  • Contact Us
  • Telecoms
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Mobility
    • Environment
    • Travel
    • StartUPs
  • Economy
  • TECHECONOMY TV
  • TBS
  • About Us
  • Contact Us
  • Telecoms
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
ADVERTISEMENT
Home Economy Finance

Otedola Backs Tinubu’s Windfall Tax

by Adetunji Tobi
August 1, 2024
in Finance
0
Olufemi Otedola Backs Tinubu Windfall Tax
Mr. Olufemi Otedola

Mr. Olufemi Otedola

UBA
Advertisements

Femi Otedola, the chairman of FBN Holdings and strongman of the Nigerian financial and capital markets, has released a statement backing the Bola Tinubu administration over a new policy to impose windfall tax on Nigerian banks.

In a statement made available to journalists on Wednesday afternoon, the billionaire businessman and majority shareholder of Geregu Power Plc, a power generating company, also descended heavily on bank officials in the country, accusing them of profligacy and extravagant spending, including the purchase and maintenance of private jets.

A concerning trend has emerged where some bank chief executives prioritise personal gain over their duty to shareholders and customers,Mr Otedola said. 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.

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 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 nations 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.

Otedola’s message reads:

Dear Members of the Press,

I am writing to express my strong support for the implementation of a windfall tax in Nigeria and to highlight the critical role this measure plays in fostering a fairer and more equitable economic environment.

This endorsement aligns with the ongoing efforts to reform the Nigerian banking sector, aimed at enhancing economic stability and integrity within our financial institutions. Windfall taxes are levies on companies or individuals who receive substantial, unexpected profits due to circumstances beyond their usual control or investment. Taxing these extraordinary gains ensures a fairer distribution of wealth, allowing those who benefit disproportionately to contribute more significantly to the broader societal good.

The revenue generated from windfall taxes can be channeled into essential public services such as healthcare, education, and infrastructure, benefiting all citizens and helping to 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.

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. Furthermore, the financial statements of manufacturing, telecoms, and SMEs indicate that many of these companies may not be able to pay corporate tax for at least 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 Nigerians broader economic development goals cannot be overstated. The Federal Governments 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. 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.

I also commend the recent recapitalization initiative in the banking sector, which sets minimum capital requirements of N500 billion for international banks and N200 billion for national banks. This move is designed to strengthen the banking sectors capacity to support Nigerias broader economic development goals. It is crucial for banks to focus on operational efficiency, technological innovation, and customer service, rather than executive extravagance.

Amid the progress with banking sector reforms, there is an urgent need to address entrenched issues within the Nigerian banking sector.

A concerning trend has emerged where some bank chief executives prioritize 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.

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 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 nations 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.

I urge all stakeholders in the Nigerian banking sector and the broader economic community to rally behind these visionary reforms. It is time for our financial institutions to embody the highest standards of integrity and service, ensuring a stronger and more resilient economy for all Nigerians.

Sincerely,

Femi Otedola

Loading

Advertisements
MTN ADS

0Shares
Tags: Femi OtedolaGeregu Power Plc
Adetunji Tobi

Adetunji Tobi

Tobi Adetunji is a Business Reporter with Techeconomy. Contact: adetunji.tobi@techeconomy.ng

Next Post
Lagos State Government Partners

Lagos State Government Partners PMI to Improve Project Management

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Bosun Tijani meets Tinubu - Fibre Optic Cable

After Tinubu’s Meeting with Bosun, FEC Approves SPV for Deployment of 90,000km Fibre Optic Cable

1 year ago
Five Possible Reasons Meta Removed ‘Facebook Job Posting’ Feature

Six Possible Reasons Meta Removed ‘Facebook Job Posting’ Feature 

2 years ago

Popular News

    Connect with us

    Currently Playing

    How to be productive this year ! #productivity #timelimit

    How to be productive this year ! #productivity #timelimit

    00:00:51

    TE Weather

    TE PODCAST

    Techeconomy Podcast
    Techeconomy Podcast

    Every week we will bring new stories from startups and influencers who are shaping and changing the world we live in. We’ll also bring you reports on topics you should know.

    Follow us @techeconomyng for more.

    Listen OnSpotify
    Audio Player
    TECH TALK EPISODE 2
    Techeconomy Podcast
    TECH TALK EPISODE 2
    [...]
    • 0.8
    • 1
    • 1.2
    • 1.5
    • 2
    Download
    • Facebook
    • Twitter
    • Linkedin
    • Copy episode link Copied
    • Download
    Captions
    00:00
    00:00
    TECH TALK EPISODE 2
    byTecheconomy

    PRODUCTIVITY AND WORK-Life Balance

    Episode play icon
    TECH TALK EPISODE 2
    Episode Description
    Episode play icon
    CYBERSECURITY ESSENTIALS
    Episode Description
    Episode play icon
    Digital Marketing Trends and strategies for 2025 and beyond
    Episode Description
    Episode play icon
    Major Lesson for Techies in 2024 and Projections for 2025
    Episode Description
    Episode play icon
    Major Lessons for Techies in an AI-Driven World | Techeconomy Business Series Highlights
    Episode play icon
    Maximizing Profitability Through Seasonal Sales: Strategies For Success
    Episode play icon
    Techeconomy Business Series
    Episode Description
    Episode play icon
    PRIVACY IN THE ERA OF AI: GETTING YOUR BUSINESS READY
    Episode Description
    Episode play icon
    Unravel the Secrets of Marketing Everywhere All At Once with Isaac Akanni from Infobip | Infowave Podcast Episode 1
    Episode Description
    Episode play icon
    The Role of Ed-tech in Life Long Learning and Continuous Education
    Episode Description
    Search Results placeholder
    Listen OnSpotify
    • About
    • Advertise
    • Careers
    • Contact Us

    © 2017 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Mobility
      • Environment
      • Travel
      • StartUPs
    • Economy
    • TECHECONOMY TV
    • TBS
    • About Us
    • Contact Us

    © 2017 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »