The Federal Government, through the Nigerian Customs Service, is poised to ground more than 60 private jets owned by high-profile individuals over unpaid import duties, amounting to several billions of naira.
The enforcement, which is set to begin today, October 14, 2024, follows a verification exercise conducted earlier this year.
According to The PUNCH, documents exchanged between the NCS and the Nigerian Airspace Management Agency reveal that many private jet owners in Nigeria have failed to pay the required duties, leading the NCS to take action.
According to the documents, the majority of the jets in question are foreign-registered and belong to Nigerian nationals, including top business leaders and executives.
The enforcement action comes nearly three months after the NCS conducted a one-month verification exercise on private jet ownership between June and July. During the exercise, it was discovered that many luxury aircraft in the country had not been registered for import duties.
One Customs official, who spoke on condition of anonymity, said the NCS had issued demand notices to all affected jet owners, instructing them to pay the outstanding duties.
The official further noted that the Nigerian Customs Act of 2023 empowers the service to penalize any individual or entity that fails to comply with import regulations.
“The Nigerian Customs Act gives us the authority to ground these jets until the required payments are made. We have issued demand notes, and we expect compliance,” the official said.
Among the luxury jets targeted are several Bombardier models, including the Challenger 604, Global 6000, and Global 7500, which are valued between $50 million and $70 million each. NCS documents indicate that 11 private jet owners have already been notified, while 55 others are expected to receive letters today.
Top private jet operators affected by this enforcement have reportedly reached out to the Presidency, hoping to intervene. However, sources confirmed that the Presidency has declined to interfere in the matter. “The Presidency is allowing the process to take its course, and there will be no exemptions,” an insider revealed.
Despite some operators beginning to settle their import duties, others have sought to delay the process. Operators of a U.S.-registered Gulfstream G650ER jet, owned by a prominent Nigerian bank, recently paid N5.3 billion in import duties to avoid having their jet grounded.
The enforcement is expected to generate significant revenue for the government. It is estimated that the NCS could recover over N260 billion from this exercise.
Meanwhile, NAMA has instructed its Air Traffic Control units to deny flight clearances to any private jets that have not settled their duties. “We are fully cooperating with the NCS to ensure transparency and compliance in aviation operations. This is not just about enforcing the law; it’s about contributing to the nation’s economic stability,” a NAMA official stated.
The Comptroller General of Customs, Adewale Adeniyi, had previously noted that several private jet operators had tried to avoid the verification process by flying their jets out of the country. “We gathered intelligence that a number of them left Nigeria to evade the verification exercise,” he said.
Adeniyi also explained that many private jet operators had been exploiting regulatory loopholes to avoid paying import duties by obtaining Temporary Import Permits.
These permits allow foreign-registered aircraft to operate in Nigeria for a limited time without paying duties. However, some jet owners have repeatedly extended their TIPs indefinitely, which Adeniyi described as an abuse of the system.
“These jets are being used within Nigeria’s airspace and should be subject to customs duties. The TIP system is being exploited, and we are putting an end to that,” the Customs chief stated.
With the clampdown now in effect, private jet owners who fail to comply with customs regulations will see their aircraft grounded until all outstanding dues are paid. The NCS is determined to ensure that private jet operators meet their financial obligations under the law.
