BIG STORY

Federal Government May Ground 60 Private Jets Today Over Unpaid Import Duty

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The Nigerian government is set to ground over 60 private jets owned by top individuals due to unpaid import duties totaling billions of naira.

Documents reveal the Nigerian Customs Service will commence enforcement on October 14, 2024.

This follows reports of widespread duty evasion and a prior verification exercise conducted between June and July.

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 Nigerians.

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, report has it 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 promised 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.

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