Nigerian govt moves to ground 60 private jets today over billions in unpaid import duties

Nigerian govt moves to ground 60 private jets today over billions in unpaid import duties

•Top bank chairmen, business moguls affected, NAMA gets list of affected planes

The Federal Government, through the Nigerian Customs Service, is set to ground more than 60 private jets owned by VIPs across the country starting today (Monday). The action stems from unpaid import duties that amount to several billions of naira, with these high-profile jet owners failing to settle their obligations. The PUNCH has confirmed that this crackdown is part of a broader effort to recover outstanding fees owed to the government.

PUNCH

The Federal Government, through the Nigerian Customs Service, will on Monday (today) ground over 60 private jets owned by very important persons in the country over unpaid import duty running into several billions of naira, The PUNCH can authoritatively report.

According to documents exchanged between the NCS and the Nigerian Airspace Management Agency, which were exclusively sighted by The PUNCH on Sunday, the enforcement exercise will commence 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.

The development reportedly led the NCS to carry out a 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.

Meanwhile, the documents sighted by The PUNCH on Sunday showed that private jets belonging to some top business moguls, including chairmen and top executives of some banks would be stopped from flying.

Already, top private jet owners, who will be affected by the decision, have been officially notified by the NCS.

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

Some of the luxury aircraft on the list are: Bombardier Challenger 604 CL-600-2B16, Bombardier Challenger 3500, Bombardier BD-700 Global 6000, Bombardier BD-700 Global 6500, Bombardier BD-700 Global 7500. Each of the Bombardier BD-700 Global 7500 are estimated to cost over$70m, while the Global 6500 and 6000 version cost over $50m.

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

This came as it was gathered that some top private jet operators had lobbied the Presidency ahead of the Monday grounding exercise but our correspondent learnt that the Presidency refused to interfere in the process.

The development, it was learnt, had made 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.

Already, 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.

The Customs had recovered some duties into the government coffers when a similar exercise was carried out in 2019.

But in the letters sighted on Sunday, planes belonging to prominent individuals and corporate entities were restricted from flying until the outstanding duties were settled.

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

However, three of these aircraft slated for grounding effective today, had been reportedly flown out of the country. However, 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, the Nigerian Customs Act of 2023 empowers the customs service to penalise the owner or importer of any goods illegally imported into the country.

The official added that the NCS had issued demand notes to all affected owners and importers, instructing them to pay outstanding duties on their private aircraft.

While some aircraft owners have entered negotiations with the NCS to settle the outstanding payments, others have submitted written undertakings to clear the dues upon their return to Nigeria.

It is estimated that the NCS could generate over N260bn from this enforcement exercise.

Findings showed the NCS had written to both the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency requesting that the identified aircraft be denied flight clearances until the duties were paid, or until the NCS issues further instructions.

Additional findings by The PUNCH revealed that four of the impounded aircraft are currently in negotiations with Customs, and their owners have agreed to pay the required duties.

In letters sighted by our correspondent, the Nigerian Airspace Management Agency acknowledged a letter from the NCS regarding the recovery of import duties on illegally imported private aircraft.

The agency issued a Notice to Airmen and directed Air Traffic Control units to ground any non-compliant aircraft starting from October 14, 2024, until cleared by the Nigeria Customs Service.

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