Business mogul, Femi Otedola, Chairman of FBN Holdings has condemned the excessive spending by Nigerian banks on luxury items.
Otedola revealed that banks spend an estimated $50 million yearly on maintaining private jets alone.
He also revealed that four banks spent over $500 million on purchasing nine private jets, which he considers unacceptable.
The billionaire noted that such extravagant spending has undermined public trust in Nigeria’s financial institutions, diverting essential resources away from critical areas like operational efficiency, technological innovation, and customer service.
He said in a statement on Wednesday, “A concerning trend has emerged where some bank chief executives prioritize personal gain over their duty to shareholders and customers.
“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.
“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, however, applauded the Federal Government’s reforms in the financial sector, which he said will empower “our banking sector to play a pivotal role in driving Nigeria’s economic development, ultimately securing a prosperous future for all Nigerians”.
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.
According to him, 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.
