Chief Femi Otedola, Chairman, FBN Holdings
Chief Femi Otedola, a major investor in the Nigerian financial, and capital market ecosystem, has frowned at the luxurious lifestyle of banks’ Chief Executives in Nigeria.
He said expending depositors’ funds and shareholders’ investments in such personal aggrandizement of a luxurious lifestyle is antithetical to the frugality, and cautious spending expected from anyone trusted with the management of depositors’ funds and other assets.
Femi Otedola, Chairman of FBN Holdings, in his media statement, said “Nigerian banks spent an estimated USD50 million yearly on maintaining private jets alone”.
He also disclosed that four banks spent over USD500 million on purchasing nine private jets, which he considered as highly contemptuous.
Otedola lamented thus, “Nigerian banks are spending an estimated $50 million annually just on maintaining private jets, with over $500 million gone into purchasing of nine private jets by four banks”.
He further explained in the media statement thus, “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.”
He however admonished that “The core values of banking- trust, integrity, and service- must be upheld. I am particularly critical of the culture of flamboyance, especially the ownership and operation of private jets.”
He, however, advised that to regain the trust of the Nigerian public in the local banks and in fulfilling their mandates, especially as it impacts the national economy, the banking sector must realign its financial priorities.
According to him, investments should be channelled into areas that directly improve customer services and enhance technological infrastructure.
The business mogul threw his support to the ongoing reform by the federal government on the national economy and especially commended the recapitalization prescribed by the bankers’ bank to the commercial banks.
Otedola enthused in his statement, “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”.
The statement further explained, “This move is designed to strengthen the banking sector’s capacity to support Nigeria’s broader economic development goals.”
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Recapitalisation of the deposit money banks ordered by the cbn will embolden the capitalists like Elumelu,s, Adenugas, Otedolas Dangotes and other capitalist’s to leverage and launder their resources to the detriment of the small shareholders in the banking industry in Nigeria.