FG Grounds 60 Private Jets Owned By High-profile Individuals In Nigeria

The Federal Government, via the Nigerian Customs Service (NCS), is planning to ground over 60 private jets owned by well-known people in the nation due to the failure to pay import duties that amount to several billions of naira.

Information shared between the NCS and the Nigerian Airspace Management Agency, shows that the action is set to start today, Monday, October 14th, 2024.

The report revealed that numerous private jet owners in Nigeria have not paid their import duties, prompting this move to recoup the unpaid amounts.

This move comes after a one-month check-up by the NCS from June to July of this year, which looked into the ownership of private aircraft and their duty payments.

Even after the check-up, many private aircraft are still not in compliance, which is why today’s grounding is taking place.

It’s important to note that some of the aircraft affected by this action are owned by high-profile individuals, including those from the banking sector.

The NCS has already reached out to several private aircraft owners, with more letters expected to be sent out today.

Don’t miss out on any real-time information. Join our WhatsApp group to stay updated.

CLICK HERE TO JOIN

Most of the aircraft affected by the grounding are registered in other countries but owned by Nigerians.
Several luxury aircraft, including the Bombardier Challenger 604 and the Bombardier BD-700 Global series, are among those valued at tens of millions of dollars.

As of Sunday, 11 jet owners have been notified about the upcoming grounding, with an additional 55 expected to receive similar notifications by the end of the day.

There are reports indicating that some jet operators sought to persuade the Presidency to intervene, but these efforts did not yield results.

Consequently, some owners have started to pay their import duties to circumvent the impending restrictions.

For example, the operators of a U.S.-registered Gulfstream G650ER have reportedly settled N5.3 billion in import duties to avoid penalties.

A comparable initiative in 2019 led to the recovery of duties from various jet owners.

This current initiative is anticipated to generate substantial revenue for the government, potentially exceeding N260 billion.

While some aircraft owners have initiated discussions with the NCS to resolve their outstanding debts, others have committed to doing so once their aircraft are back in Nigeria.

However, officials have confirmed that at least three jets have already departed the country to evade grounding, but they will face restrictions upon re-entering Nigerian airspace.

The Nigerian Customs Act of 2023 empowers the NCS to impose penalties on owners of goods, including private jets, that are imported without the appropriate duties being paid.

Demand notices have been issued, and the NCS has requested that the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency deny flight clearance for non-compliant aircraft.

The verification initiative by the NCS was implemented following the revelation that numerous private jets in Nigeria were functioning without fulfilling their customs duty obligations.

In July, NCS Comptroller General Adewale Adeniyi noted that a significant number of jets had departed the country prior to the verification exercise, seemingly to evade scrutiny.

He pointed out that while certain aircraft may be in Nigeria for a limited time, those utilized for domestic purposes are required to pay duties in accordance with international aviation standards.

Over the last three years, the government has been actively pursuing the collection of outstanding import duties from private jet operators, some of whom have taken advantage of technical loopholes, such as acquiring Temporary Import Permits (TIP), to bypass payments.

The TIP permits aircraft to operate temporarily within Nigeria; however, many operators have misused this provision by prolonging their permits indefinitely.

Customs officials have characterized the TIP system as a loophole that enables private jet owners to avoid paying import duties, which are generally set at five percent of the aircraft’s value.

Many owners have shown reluctance to settle these significant amounts, choosing instead to take advantage of the temporary exemption allowed under international regulations.

Nevertheless, the new leadership within Customs seems resolute in their efforts to address these loopholes and recover all outstanding duties.