The Federal Government has directed the Nigeria Customs Service to ground 91 private jets belonging to some wealthy Nigerians over their alleged refusal to pay import duties running to over N30bn.
Investigations revealed that some of the 91 private jets directed to be grounded belong to the senior pastors of some popular Pentecostal churches in the country, some Tier-1 banks with one of the banks owning two upmarket jets, the chief executive officers of some indigenous oil companies, and the chairmen of some Tier-1 banks.
As such, the Comptroller-General of Customs, Col Hameed Ali, (retd.) following a directive from the Presidency, has written a letter to the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, and the Nigerian Airspace Management Agency asking the agencies to ground the affected private jets with immediate effect.
The letter, with reference number NCS/T&T/ACG/042/s.100/VOL.II, which was dated November 2, 2021, was addressed to the Director-General, NCAA, Capt Musa Nuhu.
A copy of the letter was also addressed and sent to the Managing Director, FAAN, Capt Rabiu Yadudu; and the Managing Director, NAMA, Capt Fola Akinkuotu.
The letter directed the aviation agency regulator (NCAA), the nation’s airspace management agency (NAMA), and airport management agency (FAAN), to ground the private jets by denying them administrative and operational flight clearances indefinitely.
The NCAA letter read in part, “The Federal Government in its drive for enhanced revenues has mandated the Nigeria Customs Service to immediately recover from defaulting private aircraft owners the required statutory import duties on their imported aircraft.
“You may wish to recall the verification exercise conducted by the NCS, initially scheduled for a 14 day period, but magnanimously extended over a 60-day period from 7th June through 6 August 2021, following a World Press Conference held on 31st May 2021. The outcome of the aforementioned verification exercise is a compilation of all private aircraft imported into the country without payment of statutory import duty.
“The Nigeria Custom Service, in line with its statutory functions, is empowered by Part 111 Sections 27, 35, 37, 45,46, 47, 52, 56,63 & 64; Part XI Sections 144, 145, 155, 160, 161& 164 and Part XII Sections 167, 168, 169, 173 & 174 of the Customs and Excise Management Act.”
It further read, “In this regard therefore, your full cooperation is being solicited to ensure the success of this initiative and that all such private aircraft owners or representatives are denied administrative and operational flight clearances indefinitely, until an NCS issued Aircraft Clearance Certificate is procured and presented to your organisation as proof of compliance.
“For the avoidance of doubt, ALL aircraft operated in accordance with the Nigerian Civil Aviation Authority’s regulation for the issuance of Permit for Non-Commercial Flight and those issued with Flight Operations Clearance Certificate and Maintenance Clearance Certificate accordingly are affected by this directive.
“Please find attached the list of all verified aircraft and indeed others of the Nigerian Civil Aviation Authority’s register, which may not have come forward for your record and necessary action. Strict compliance with this directive is to be ensured. Please accept the assurances of my highest regards and esteem as always.”
“The 91 private jets owe import duties in excess of N30bn and the Federal Government has directed that the Customs must recover this money. This is why we have sent demand notices to the private jet owners,” a Customs source privy to the development told one of our correspondents on condition of anonymity.
Following the alleged discovery that several private jets owners, under the guise of Temporary Import Permit, had failed to pay the statutory import duty to the coffers of the government, the CG of Customs, Ali, set up a verification panel to review all TIPs and the relevant aircraft import documents of all private jets in the country.
At the end of the 60-day exercise, 57 private jets, which had licences for commercial charter operations, were cleared and issued Aircraft Operators Certificate by the Customs.
However, 29 private jets, whose owners came for the verification were found to be liable to pay the import duty.
The Customs also compiled a list of another 62 private jets whose owners failed to appear for the verification exercise but were found to be liable for import duty payment.
However, other private jets whose owners have commenced the process of paying their import duty have been given a 14-day ultimatum to clear the debts, while the list of the 91 private jets whose owners have yet to present themselves for import duty payment has been presented to the aviation agencies by the NCS for the immediate grounding of their flight operations.
However, industry stakeholders say there are regulations requiring taxes to be paid on a private jet inasmuch as the aircraft is domiciled in the country or staying for a relatively long period of time, say 60 days or 180 days, depending on the laws of the country.