The Federal Government, through the Nigerian Customs Service (NCS), is set to ground over 60 private jets owned by prominent individuals, including business moguls and bank executives, due to unpaid import duties amounting to billions of naira.
The exercise, which will commence today (Monday), follows months of verification by the NCS and aims to recover substantial revenue from private jet owners who have avoided paying the required duties on their aircraft.
Documents exchanged between the NCS and the Nigerian Airspace Management Agency (NAMA), exclusively obtained by The PUNCH, indicate that many private jet owners, especially those with foreign-registered aircraft, have failed to meet their tax obligations.
This enforcement action comes nearly three months after a verification exercise conducted by the NCS between June and July, where it was discovered that a significant number of private jets in the country had not paid import duties.
Some of the affected aircraft include high-end models such as Bombardier Challenger 604, Bombardier Global 6000, Global 6500, and Global 7500, with the latter costing over $70 million. While 11 private jet owners have already received official notification, another 55 are expected to be notified today. This move will ground their aircraft until the outstanding duties are settled.
The impending grounding of these jets follows failed attempts by some owners to lobby the Presidency to intervene. Despite efforts to avoid the clampdown, the government has remained firm, with some private jet owners already starting the process of paying their import duties. For example, the operators of a Gulfstream G650ER, owned by a leading Nigerian bank, have reportedly paid N5.3 billion to avoid having their aircraft grounded.
This is not the first time the NCS has taken such action. A similar exercise in 2019 resulted in the recovery of several unpaid duties. However, in this latest move, private jets belonging to influential individuals and corporate entities have been restricted from flying until their tax obligations are cleared. According to officials, some of the affected aircraft have been flown out of Nigeria in an attempt to evade the clampdown, but they will be grounded upon their return.
An NCS official, speaking on condition of anonymity, explained that the Customs Act of 2023 grants the service authority to penalize owners of goods, including private jets, that were imported illegally or without proper duties. Demand notes have been issued to the affected owners, instructing them to pay their outstanding import duties or face penalties. The NCS estimates that it could generate over N260 billion from this enforcement.
The NCS has also engaged NAMA and the Nigerian Civil Aviation Authority (NCAA) to support the exercise by denying flight clearances to any aircraft that has not paid its dues. NAMA has issued a Notice to Airmen, instructing Air Traffic Control units to ground non-compliant aircraft starting from October 14, 2024. Additionally, NAMA has requested that details of cleared aircraft be forwarded promptly to ensure smooth coordination and transparency in flight operations.
The Customs Comptroller General, Adewale Adeniyi, had previously revealed that some private jets had left the country to avoid participating in the verification exercise, which exposed widespread non-compliance with import duty regulations. Adeniyi explained that the verification was introduced because many private jets were operating outside the legal framework, with only a small fraction paying the required customs duties.
Adeniyi highlighted that, according to international aviation regulations, private jets that remain in Nigeria beyond a temporary stay are obliged to pay import duties. He noted that while some aircraft enter Nigeria under Temporary Import Permits (TIP), which are valid for an initial 12-month period and can be extended twice for six months, many operators have exploited this loophole to indefinitely evade duty payments.
The TIP, intended for aircraft on temporary visits, has been misused by many private jet owners to avoid the 5% import duty, which is calculated based on the value of the aircraft. Due to the high cost of private jets, some owners have preferred to extend the TIP rather than pay the substantial import fees. The NCS has described this practice as fraudulent and is now determined to enforce compliance.
The clampdown is expected to significantly boost government revenue and send a strong message to private jet owners who have exploited regulatory loopholes to avoid paying import duties. The NCS is committed to ensuring that all private jet operators comply with the law, with the ultimate goal of enhancing transparency and contributing to the nation’s economic stability.
