Chike-Obi: Personal Views on Windfall Tax Differ from BDAN’s Stance

Nume Ekeghe

Chairman of the Bank Directors Association of Nigeria (BDAN), Mustafa Chike-Obi, has that reiterated personal opinions by some bank chairmen on the Windfall tax imposed on banks by the federal government are not the collective position of the body of bank directors.

The clarification comes amidst growing debate and concern within the financial sector over the proposed windfall tax, which has sparked a variety of opinions among banking leaders. Chike-Obi’s comments have added to the discourse but have also prompted questions about the unified position of BDAN on the matter.

In a statement posted on his X (formerly Twitter) account, Chike-Obi said, “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.” 

BDAN, a pivotal organisation in Nigeria’s financial sector, has yet to officially comment on the windfall tax proposal. The upcoming board meeting on August 12, 2024, is highly anticipated, with stakeholders eager to hear the association’s collective stance. 

Some bank chairmen have voiced support for the recent amendment of the Finance Bill, which retrospectively imposes a 50 per cent 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 prominent supporters was Femi Otedola, Chairman of FBN Holdings and an influential figure in the Nigerian financial and capital markets, who endorsed the new policy of the Bola Tinubu administration. Otedola also criticized bank officials for profligacy and extravagant spending, including the purchase and maintenance of private jets. 

“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.

Also, Chairman of the United Bank for Africa, Mr. Tony Elumelu also approved of the move, saying it was aimed at alleviating poverty.

The businessman and philanthropist said there was a need to “democratize 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.”