Chairman of FBN Holdings and prominent Nigerian billionaire, Femi Otedola, has condemned what he described as the “lavish expenditures” of Nigerian banks on luxury items.
He estimates that banks spend a staggering $50 million annually on maintaining private jets alone. Furthermore, he revealed that four banks have collectively spent over $500 million on purchasing nine private jets, which he deems excessive and unacceptable.
Otedola, who made revelation in a statement on Wednesday, believes that such extravagance has eroded public trust in Nigeria’s financial institutions, diverting vital resources away from crucial areas such as operational efficiency, technological innovation, and customer service.
He emphasised that the core values of banking, including trust, integrity, and service, must be upheld, and expressed particular disapproval of the flamboyant culture, especially the ownership and operation of private jets, which he sees as a betrayal of the duties owed to shareholders and customers.
“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.”
The billionaire businessman commended the Federal Government’s financial sector reforms, stating that they will enable the banking sector to play a vital role in driving Nigeria’s economic growth and securing a prosperous future for all Nigerians.
He expressed optimism that these reforms will empower the banking sector to become a key driver of economic development, ultimately leading to improved economic outcomes for the country and its citizens.
He added, “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 sector’s capacity to support Nigeria’s broader economic development goals.”
He, however, maintained that regaining the trust of the Nigerian public and fulfill its pivotal role in the nation’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,” he stated.
