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FG Set to Ground 60 Private Jets Over Unpaid Import Duty

Ademola Damilola by Ademola Damilola
October 14, 2024
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FG Set to Ground 60 Private Jets Over Unpaid Import Duty
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The Federal Government, through the Nigerian Customs Service (NCS), is poised to ground over 60 private jets today (Monday) due to unpaid import duties amounting to billions of naira. Documents exchanged between the NCS and the Nigerian Airspace Management Agency (NAMA).

Reports suggest that a significant number of private jets currently operating in Nigeria have not paid the required import duties. In response, the NCS conducted a verification exercise on all private jet owners between June and July. Following this, the NCS decided to enforce grounding for jets whose owners have failed to settle their outstanding duties.

The jets to be grounded include those owned by top business executives, including chairpersons and senior executives of major banks. Affected private jet owners have already been notified, with most of the aircraft being foreign-registered but owned by Nigerians.

Several high-end luxury jets, such as Bombardier Challenger and Global series, are on the list, with some models valued at over $70 million. Though some owners have started settling their duties, officials confirmed that three jets had left the country to evade grounding, but they will be restricted from flying upon return.

NCS estimates that the enforcement could generate over N260 billion for the government. NAMA has instructed Air Traffic Control to deny flight clearances for the non-compliant aircraft until their duties are fully paid. This enforcement follows an earlier similar action in 2019 that led to the recovery of duties from some jet owners.

The NCS, empowered by the 2023 Customs Act, is determined to ensure compliance with regulations governing the import of private jets. The Comptroller General of Customs, Adewale Adeniyi, previously expressed concerns about private jet operators evading verification and tax duties. The verification exercise was launched in response to the growing number of jets operating outside the law, with many exploiting loopholes such as repeatedly extending Temporary Import Permits (TIPs) to avoid paying the statutory 5% import duty on luxury aircraft.

While some jet owners are negotiating with NCS to settle their payments, today’s grounding is expected to significantly impact Nigeria’s private jet operators and boost government revenue.

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