FG to Ground 60 Private Jets Over Unpaid Import Duties

Federal Government initiates clampdown on private jets with unpaid import duties, affecting top business executives

The Federal Government is set to ground over 60 private jets due to unpaid import duties, a move that targets high-profile individuals, including business moguls and top bank executives. This decision, driven by the Nigerian Customs Service (NCS), aims to recover billions of naira in outstanding levies. According to sources, the enforcement will begin today, October 14th, 2024, and involves aircraft that failed to comply with previous demands.

Many of the grounded private jets belong to Nigerian-owned companies but are registered abroad. These aircraft, including luxury models like the Bombardier Global 7500 and Global 6500, each costing over $50 million, have dodged their legal import tax obligations for years. Despite prior attempts by the NCS to collect duties, many owners exploited loopholes, prolonging their temporary import permits to avoid full payments.

The private jets import duty enforcement follows a one-month verification period conducted by the NCS earlier this year. It was found that several aircraft operators had fled the country, attempting to bypass the process. However, the customs authority has tightened regulations, issuing demand notes and denying flight clearance for non-compliant jets.

In one notable case, a Nigerian bank’s Gulfstream G650ER jet operator paid N5.3 billion to avoid having their aircraft grounded. The NCS estimates that the current enforcement could bring in over N260 billion, benefiting the nation’s coffers. Despite efforts by some private jet operators to lobby the presidency to intervene, the government has maintained its stance, allowing the NCS to proceed unhindered.

The private jets import duty clampdown will continue until all outstanding payments are made. Nigerian Airspace Management Agency (NAMA) has also been directed to collaborate, grounding non-compliant aircraft and ensuring that cleared jets are promptly reported. This crackdown marks another step in the government’s effort to hold the aviation sector accountable while increasing its revenue generation.

The enforcement signals the Federal Government’s seriousness in tackling the use of technical loopholes in tax evasion, particularly through the misuse of Temporary Import Permits (TIP). This practice, while intended for short-term aircraft operations, has been extended unlawfully by private jet owners, bypassing the required five percent import duty on luxury jets.