According to Chike-Obi, chairman of Fidelity Bank, Otedola and Elumelu’s individual opinions do not reflect the opinions of banks as a whole on windfall tax. Mustafa Chike-Obi, the chairman of Fidelity Bank Nigeria, has said that the “banking community” will shortly make public its official stance on the controversial windfall tax that Nigeria’s federal government has imposed on banks.
This was announced by Chike-Obi on Friday via a tweet from his X (formerly Twitter) account. According to him, the opinions of certain bank chairs about the subject are not indicative of the banking community as a whole.
“I have read the personal views of some bank chairmen on the windfall tax issue,” Chike-Obi stated. The banking community is not represented by such opinions.
In order to address the matter, Chile-Obi disclosed that the Bank Directors Association of Nigeria* (BDAN) would call a board meeting on August 12 to talk about the matter of the windfall tax as well as other urgent issues that the banking industry is facing.
“BDAN will communicate its views on this and other very important issues concerning our community after our board meeting on the 12th,” Chike-Obi promised.
Remember that both Chairman UBA Tony Elumelu and Chairman FBN Holdings Femi Otedola have expressed support for the windfall tax in recent days?
Otedola, a billionaire businessman, supported the windfall tax’s introduction, highlighting its contribution to the creation of a more equitable business environment.
He claimed that by taxing these abnormal gains, a more equitable distribution of wealth would be ensured, enabling those who profit disproportionately to make larger contributions to the general welfare of society.
“A major first step towards accomplishing these goals is the recent declaration of a windfall tax on the enormous profits earned by Nigerian banks.According to Otedola, “this extraordinary gain should be redistributed to fund public welfare, education, healthcare access, and critical infrastructure development.”
“Nigerian banks are expected to spend $50 million a year simply on private jet maintenance; four banks alone have purchased nine private planes for almost $500 million. The public’s confidence in our financial institutions is severely damaged by this degree of excess, according to Otedola.
Elumelu Aldo praised the action, stating that its goal was to reduce poverty.
According to the entrepreneur and philanthropist, “democratising prosperity for Nigerians, ensuring access to a good life for all” is vital.
This came after the government met on Wednesday to discuss the windfall tax with members of the banking industry, chaired by Elumelu and FCMB GCEO Ladi Balogun.
Finance Minister Wale Edun called the meeting “amicable, knowledge-based, and data-driven,” pointing out that President Bola Tinubu was actively participating in the conversation.
“At this crucial juncture, we convened and discussed the significance of the banking system and the overall financial system,” stated Edun.
Naturally, we are aware that the banking sector is now raising capital. They are offering anyone, including foreign investors, the chance to share in their fortune by selling shares.
“In light of this, Mr. Elumelu and Mr. Balogun requested some clarifications, especially regarding the windfall levy that the National Assembly recently passed,” Edun continued.
The banking industry was given a forum to voice their concerns and offer support for the President’s proposals during the conference.
“We believe that no one segment should suffer, and the government should continue to create jobs while businesses thrive,” Elumelu stated in reference to his support of the government’s plan to reduce poverty through the windfall tax. Prosperity for company owners, common Nigerians, and foreign and local investors is essential. Everyone ought to be content. Elumelu continued, “I’m happy with the meeting’s outcome and I hope for a better and happier society going forward.