BDAN distances self from Bank Chairmen’s views on proposed forex windfall tax
The Bank Directors Association of Nigeria (BDAN) has distanced itself from the views of some bank chairmen on the proposed payment of 70 per cent foreign exchange windfall tax, indicating a deepening divide within the banking industry.
The association clarified that the views expressed by some chairmen in support of the tax are personal opinions and do not represent the stance of the entire banking community.
BDAN assured the public that its official position will be made known after its scheduled board meeting on August 12th, 2024 leaving many speculating about the outcome.
The BDAN Chairman, Mustafa Chike-Obi, made this clarification through his X (formerly Twitter) account, stating:
“I have read the personal views of some bank chairmen on the windfall tax issue. Those views do not represent the banking community. BDAN will communicate its views after our board meeting on the 12th, on this and other very important issues concerning our community.”
It would be recalled that some bank chairmen have lent their support for the recent amendment of the Finance Bill, which retrospectively imposes a 50 percent levy (approved at 70 per cent by the National Assembly) on foreign exchange (FX) gains reported by banks in their 2023 annual financial statements.
Among the bank chairmen that supported the government proposal were Femi Otedola, Chairman of FBNHoldings and Chairman of United Bank for Africa, Mr Tonny Elumelu.
Otedola criticised bank officials for profligacy and extravagant spending, including the purchase and maintenance of private jets.
He said “Nigerian banks are spending an estimated $50 million annually just on maintaining private jets, with over $500 million spent on purchasing nine private jets by four banks,” Otedola said in a recent statement.
“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.”
Elumelu also supported the move, saying it was aimed at alleviating poverty.
The businessman and philanthropist said there was a need to “democratise prosperity for Nigerians, ensuring access to a good life for all.
According to Elumelu, “We support the government’s intention to alleviate poverty with the windfall tax, but we also believe that no one segment should suffer and the government should continue to create jobs while businesses thrive,” he said.
“‘Mutual prosperity is key – prosperity for business owners, ordinary Nigerians, and foreign and local investors. Everyone should be happy. I’m pleased with the meeting’s outcome, and I hope for a better and happier society going forward.”
