Banks spend $50m yearly to maintain private jets, says Otedola

•Four operators spend over $500m to purchase aircraft

Chairman of FBN Holdings Plc, Femi Otedola, has revealed that Nigerian banks spend an estimated $50 million yearly to maintain private jets. He said that over $500 million has so far been spent on purchasing nine private jets by four banks.

Otedola, who made the revelations in an opinion article, stated that the extravagance erodes public trust in financial institutions and diverts crucial resources away from vital areas such as operational efficiency, technological innovation, and customer service.

He said he fully supports the implementation of the recently approved 70 per cent tax on foreign exchange (FX) profits by Nigerian banks, noting that taxing the extraordinary gains will ensure a fairer distribution of wealth.

“This endorsement aligns with the ongoing efforts to reform the Nigerian banking sector, aimed at enhancing economic stability and integrity within our financial institutions,” he said.

He said given the prevailing economic circumstances, the financial statements of manufacturing, telecoms and SMEs indicate that many companies may not be able to pay corporate tax in 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 the gaps, ensuring revenue generation and fostering economic development,” he said.

The famous businessman said the importance of aligning financial priorities with Nigeria’s broader economic development goals cannot be overstated, adding that the Federal Government’s reforms are both timely and essential for the sustainable growth of the economy.

He said: “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 also commended the recent recapitalisation 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 sector’s capacity to support Nigeria’s broader economic development goals. Banks must focus on operational efficiency, technological innovation, and customer service, rather than executive extravagance,” he noted.

He took a swipe at the extravagance of bank chiefs, saying they prioritise personal gains over their duty to shareholders and customers. He insisted that the core values of banking, which are trust, integrity and service, must be upheld.

He stressed: “To regain the trust of the Nigerian public and fulfill its pivotal role in Nigeria’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.

“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.”