Otedola Exposes Nigerian Bank Owners, Backs Tinubu’s Proposed Windfall Tax on FX Earnings
- The chairman of FBN Holdings Plc, Femi Otedola, has supported the proposed windfall tax on FX earnings by banks
- Otedola frowned on the excessive spending by banks on luxuries such as private purchase and maintenance
- He disclosed that the banks spend about $50 million annually in maintaining their private jets
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The chairman of Geregu Power Plc, Femi Otedola, has backed the Nigerian government's proposed 70% windfall tax on Forex gains by banks.
The Nigerian billionaire, who is also the chairman of FBN Holdings, criticised the banking industry for its estimated $50 million bill on private jet maintenance and higher bill on jet purchases.
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Otedola highlights benefits of taxing banks’ FX gains
The Nigerian Senate amended the Finance Act to impose a 70% windfall tax on banks’ FX profits.
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A windfall tax is a higher tax levied by the government on sectors or businesses that gained from favourable market conditions.
President Bola Tinubu said the money would be part of the revenue to fund the N6.2 trillion supplementary budget.
According to Otedola, the windfall tax will highlight its critical role in fostering an equitable economic environment.
Otedola said:
“I write to express my strong support for implementing a windfall tax in Nigeria and to highlight this measure's critical role in fostering a fairer and more equitable economic environment.
Otedola supports FG’s windfall tax plan
Reports say the billionaire businessman said taxing these extraordinary gains will ensure a fairer distribution of wealth, allowing those who gain disproportionately to contribute to the broader societal good.
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He disclosed that the revenue generated from the taxes could be used for other critical public services, such as healthcare, education, and infrastructure, which will benefit the citizens and reduce social inequalities.
According to reports, Otedola said the move is an important step in achieving the government's goals.
He asked the banks to realign their financial priorities to regain customers’ trust as they invest in areas that improve customer services and boost technological infrastructure.
Geregu Power Chairman supports fellow billionaire
Legit.ng reported that the billionaire lampooned the persecution of fellow billionaire and the Chairman of the Dangote Group, Aliko Dangote, by Nigerian petroleum regulators.
Otedola lauded the Nigerian government's directive to NNPC and other regulators to commence the sale of crude oil to the Dangote Refinery in naira.
Dangote, NNPC, and the NMDPRA were engaged in a face-off over crude oil supply to the $20 billion refinery before the Nigerian government intervened.
Femi Otedola’s electricity firm rakes in N30.2bn in 6 months
Legit.ng earlier reported that Geregu Power Plc, owned by billionaire Femi Otedola, has delivered a robust financial performance in the first half of this year.
The company’s half-year revenue reached a staggering N30.2 billion, solidifying its position as a top player in Nigeria’s power industry.
The company’s first-half revenue surged 132.5% yearly, reaching N80.7 billion from N34.7 billion recorded in the same period in 2023.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
