Femi Otedola, chairman of Geregu Power Plc, has expressed his support for the implementation of the federal government's windfall tax on the foreign exchange (FX) gains of banks.
Femi Otedola, chairman of Geregu Power Plc, has expressed his support for the implementation of the federal government’s windfall tax on the foreign exchange gains of banks.
Windfall taxes are levies on companies or individuals who receive substantial, unexpected profits due to circumstances beyond their usual control or investment, he explained.Otedola said taxing these extraordinary gains ensures a fairer distribution of wealth, allowing those who benefit disproportionately to contribute more significantly to the broader societal good.
“Furthermore, the financial statements of manufacturing, telecoms, and SMEs indicate that many of these companies may not be able to pay corporate tax for at least 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 these gaps, ensuring revenue generation and fostering economic development.
The philanthropist 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.He expressed belief that the move was designed to strengthen the banking sector’s capacity to support Nigeria’s broader economic development goals.
“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.”
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