FG grounds 60 private jets over unpaid import duties

The Federal Government of Nigeria, through the Nigerian Customs Service (NCS), has grounded over 60 private jets owned by high-profile individuals and companies due to unpaid import duties.

The owners of these jets, including business moguls and top bank executives, reportedly owe billions of Naira in import duties.

The Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA) have been directed to deny flight clearances to the affected jets until their owners settle their debts.

This move is expected to generate significant revenue for the government.

The enforcement exercise commenced on October 14th, 2024.

There are reports that duties are not being paid on the majority of private jets currently in the country with the NCS seeking to recover unpaid import duties running into several billions of naira.

What is import duty?

Import duty, also known as customs duty, is a tax collected by customs authorities on goods sold across borders.

The purpose of import duties is to raise income for local governments and to increase the end price of imported goods for consumers.

This will compel consumers to buy from the domestic market instead opting for foreign goods.

Effect of the clampdown

The development reportedly led the NCS to carry out one-month verification exercise on all private jet owners in the country between June and July.

The latest decision to ground the private jets is coming almost three months after the NCS verification exercise.

Documents sighted on Sunday showed that private jets belonging to some top business moguls, including chairmen and top bank executives, would be stopped from flying.

These have been affected by the decision and have been officially notified by the NCS.

According to the documents, the majority of the affected planes are foreign-registered private jets owned by Nigerians.

Some of the aircraft on the list below:

1) Bombardier Challenger 604 CL-600-2B16,
2) Bombardier Challenger 3500,
3) Bombardier BD-700 Global 6000,
4) Bombardier BD-700 Global 6500,
5) Bombardier BD-700 Global 7500.

The cost of the aircrafts

Each of the two jet Bombardier BD-700 and Global 7500 are estimated to cost over $70m. Meanwhile the Global 6500 and 6000 version cost over $50m.

While 11 private jet owners have received notification of the grounding of their aircraft, no fewer than 55 other operators would get their letters on Monday (today).

It was learnt that some top private jet operators had lobbied the Presidency ahead of the Monday grounding exercise.

Diaspora Digital Media (DDM) correspondent learnt that the Presidency refused to interfere in the process.

The development has reportedly forced some operators to begin the process of settling the import duty.

Officials said some private jet owners had promise to settle the duty this week.

However, operators of a United States-registered Gulfstream G650ER jet belonging to a leading Nigerian bank have reportedly paid N5.3bn import duty to avoid the clampdown exercise.

It could be recalled that Customs had recovered some duties when a similar exercise was carried out in 2019.

This enforcement action is expected to generate significant revenue to the government.

Meanwhile, three of these aircraft slated for grounding effective today, had been reportedly flown out of the country.

Government sources, however, said that the jets will be grounded as soon as they return to the country.

According to officials, who spoke on condition of anonymity because they lacked the authority to speak on the matter.

What the law says on illegal importation of goods

The Nigerian Customs Act of 2023 empowers the customs service to penalise the owner or importer of any goods illegally into the country.

Available information showed that NCS had issued demand notes to all affected owners and importers.

The agency instructed them to pay outstanding duties on their private aircrafts.

It was learnt that some aircraft owners have entered negotiations with the NCS to settle the outstanding payments.

Others, meanwhile, have submitted written undertakings to clear the dues upon their return to Nigeria.

It is estimated that the NCS could generate over N260 billion from this enforcement exercise.

Customs asks NCAA and NAMA to stop the flights

According to confirmed sources, Customs had written to both NCAA and NAMA requesting that the identified aircraft be denied flight clearances until the duties were paid.

However, they revealed that four of the impounded aircraft are currently in negotiations with Customs.

The owners have also agreed to pay the required duties to avoid the clampdown.

The leadership of Customs said it is poised to get all operators to pay the import duty.

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