News
Private Jets are not a Luxury for Bank Execs in Nigeria
There is nothing wrong when bank executives own or fly private jets, asserted the Chartered Institute of Bankers in Nigeria (CIBN).
Erastus Akingbola, president of CIBN, mentioned this statement wile he was briefing journalists in Lagos last Tuesday. Akingbola said that corporate jets are not luxuries but a means to deal with an executive’s time-consuming job.
According to Nigeria-based journalists Yemi Kolapo and Bosede Olusola-Obasa, “This statement came against the backdrop of allegations that chief executive officers of banks were squandering shareholders’ funds on flamboyant lifestyles with their new jet acquisition frenzy even when returns on investment were dwindling.”
Recent investigations found out that around four chief executives of renowned banks in Nigeria owned private jets, which are managed by commercial airlines in behalf of the banks.
Sources say that these newly acquired jets are estimated to cost $20 million, excluding some other costs.
Kolapo and Olusola-Obasa gathered a list of some of the banks that owned jets: “Our correspondents’ investigations revealed that the United Bank for Africa Plc owns a Cessna Citation jet, managed by Virgin Nigeria, while Zenith Bank Plc owns a HS 125-800XP, managed by Arik Air. It was also discovered that Oceanic Bank International Plc owns two HS 125-800 jets, while Guaranty Trust Bank Plc has a Challenger 306 jet, managed by Kings Airlines and Travels Limited.”
Akingbola was quick to point out that it is fine for bank execs to own jets, as long as they have not been found to have engaged in sharp practices.
“Yes, I know some of my colleagues have jets,” said Akingbola. “Once they have not been found to have stolen money; once their banks are stable; and as long as they can give returns to their shareholders, there is no problem. It is a common thing abroad. My prayer is that one day, some of your editors will be so successful that they will equally have private jets.”
He follows, “I don’t have one yet. But let me say this; owning a jet is not a luxury. Why? I charter aircraft for the day because sometimes I want to touch three states because my diary is so full. So, if I can use that day productively by owning a jet, it is better. There was a day I was in four states in one day because I had an aircraft. I was able to achieve a lot that day and return to Lagos in the evening. So, it is not a luxury.”
The CEO concluded, “We should not pray for Nigerians to be poor so that the economy will thrive. People must succeed.”
