Mustafa Chike-Obi, Chairman of Fidelity Bank Nigeria, has announced that the “banking community” will soon release its official stance on the contentious windfall tax imposed by Nigeria’s federal government.
In a tweet from his X (formerly Twitter) handle on Friday, Chike-Obi clarified that personal views expressed by some bank chairmen do not represent the collective stance of the banking sector.
Chike-Obi indicated that the Bank Directors Association of Nigeria (BDAN) will convene a board meeting on August 12 to discuss the windfall tax and other pressing concerns affecting the banking sector. “BDAN will communicate its views after our board meeting on the 12th, on this and other very important issues concerning our community,” he stated.
In recent days, Chairman FBN Holdings Femi Otedola and Chairman UBA Tony Elumelu have both voiced their support for the windfall tax. Otedola emphasized its role in fostering a fairer economic environment and funding critical infrastructure, education, healthcare, and public welfare initiatives. He noted the extravagant spending of banks, which erodes public trust in financial institutions.
Elumelu also approved of the tax, highlighting its aim to alleviate poverty and ensure prosperity for all Nigerians. This followed a meeting on Wednesday between government officials and banking sector representatives, led by Elumelu and FCMB GCEO Ladi Balogun, to discuss the windfall tax.
Finance Minister Wale Edun described the meeting as “amicable, knowledge-based, and data-driven,” with President Bola Tinubu actively engaged in the discussion. Elumelu expressed support for the government’s intention to alleviate poverty with the windfall tax while advocating for a balanced approach that allows businesses to thrive and create jobs.
Credit: Arise News