Femi Otedola Backs Windfall Tax on Banks’ FX Gains to Fund Public Services

Femi Otedola Backs Windfall Tax on Banks’ FX Gains to Fund Public Services: Femi Otedola, Chairman of FBN Holdings, has publicly endorsed the federal government’s

proposed windfall tax on the foreign exchange gains of banks. In a statement,

Otedola emphasized that the revenue generated from this tax can be utilized

to fund essential public services such as healthcare, education, and

infrastructure, ultimately benefiting all citizens and reducing social inequalities.

Otedola’s endorsement aligns with the ongoing efforts to reform the

Nigerian banking sector, aimed at enhancing economic stability and

integrity within the country’s financial institutions. He stressed that taxing

extraordinary gains ensures a fairer distribution of wealth, allowing

those who benefit disproportionately to contribute more significantly to

the broader societal good.

the windfall

The proposed windfall tax is a response to the substantial increases in the

value of bank assets denominated in US dollars, resulting from

the consolidation of various foreign exchange rate systems into a

single investors and exporters window. Otedola argued that 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, Otedola emphasized the need for banks to focus on

operational efficiency, technological innovation, and customer service,

rather than executive extravagance. He criticized the culture

of flamboyance, particularly the ownership and operation of private jets,

which he estimated costs Nigerian banks $50 million annually.

Otedola urged banks to uphold the core values of banking – trust, integrity,

and service – and redirect resources towards vital areas such as operational efficiency,

technological innovation, and customer service.