The Federal Government of Nigeria is set to ground over 60 private jets owned by prominent individuals due to unpaid import duties amounting to billions of naira. This enforcement action, initiated by the Nigerian Customs Service (NCS), is expected to commence today, October 14, 2024, following a verification exercise conducted earlier this year.
Key Takeaways
- Over 60 private jets to be grounded due to unpaid import duties.
- Affected owners include top business moguls and bank executives.
- The enforcement is expected to generate significant revenue for the government.
Background of the Enforcement
The decision to ground these aircraft comes after a one-month verification exercise carried out by the NCS between June and July 2024. Reports indicate that many private jets operating in Nigeria have not paid the required import duties, prompting the NCS to take action.
Details of the Grounding
The NCS has compiled a list of affected aircraft, which includes several high-value Bombardier models:
- Bombardier Challenger 604
- Bombardier Challenger 3500
- Bombardier BD-700 Global 6000
- Bombardier BD-700 Global 6500
- Bombardier BD-700 Global 7500
Each of these jets is valued at over $50 million, with the Global 7500 estimated to cost more than $70 million.
Notification to Owners
As of now, 11 private jet owners have already received notifications regarding the grounding of their aircraft, with an additional 55 expected to be informed today. Despite attempts by some operators to lobby the Presidency for intervention, the government has remained firm in its decision.
Financial Implications
The NCS aims to recover over N260 billion from this enforcement exercise. Some private jet owners have begun negotiations to settle their outstanding duties, with reports of one bank already paying N5.3 billion to avoid the clampdown.
Legal Framework
The Nigerian Customs Act of 2023 empowers the NCS to penalize owners of illegally imported goods. The agency has issued demand notes to all affected owners, instructing them to pay the outstanding duties on their private aircraft. Failure to comply will result in the grounding of the jets until the dues are settled.
Previous Enforcement Actions
This is not the first time the NCS has taken such measures. A similar enforcement action in 2019 successfully recovered significant duties. The current situation highlights ongoing issues with compliance among private jet operators, many of whom have exploited loopholes in the regulations to evade payment.
Conclusion
The grounding of these private jets marks a significant step in the Nigerian government’s efforts to enforce compliance with import duty regulations. As the NCS continues to crack down on non-compliant aircraft, it aims to bolster government revenue and ensure that all operators adhere to the law. The outcome of this enforcement action will be closely monitored, as it could set a precedent for future compliance efforts in the aviation sector.
Sources
- Import duty: FG may ground 60 private jets today, Punch Newspapers.