Nigerian Bank's Private Jet Grounded Amidst Crackdown on Unpaid Import Duties

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On July 1, 2024,


the Federal Government of Nigeria, through the Nigeria Customs Service (NCS), grounded a United States-registered Gulfstream G650ER jet belonging to a prominent Nigerian bank. This marks the beginning of a broader crackdown on private jet owners for unpaid import duties, which total several billion naira.


The recent grounding follows the NCS's one-month verification exercise, which began on June 19, 2024, and is set to end on July 19, 2024. This exercise aims to identify private jet operators who have illegally imported aircraft without paying the necessary import duties.


A similar exercise in 2019 led to the recovery of approximately N2 billion. The current effort expects around 80 private jet owners to present their import documents and aircraft registration certificates to Customs in Abuja.


Despite the official start of aircraft grounding set for after the verification exercise, some private jet operators' attempts to export their aircraft prematurely have prompted the NCS to take immediate action. Last week, the NCS reported that certain operators were temporarily flying their jets out of Nigeria, possibly to evade the verification process.


Findings revealed that a luxury Gulfstream G650ER, with registration number N331AB, owned by a top-tier bank, has been grounded at Lagos airport due to an estimated N1.9 billion in unpaid import duties. The NCS has directed the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA) to cancel the flight clearance approval for the aircraft.


The bank is reportedly indebted to the government for N1.9 billion in unpaid import duties on two previously owned jets, which have since been exported. This assessment, conducted by the NCS in 2021, may rise to about N6 billion due to the current exchange rate.


NCAA and NAMA officials have confirmed receiving instructions to cancel the flight clearance approval for the Gulfstream G650ER. According to NCS, the aircraft violated import duty regulations, and thus, an Export Permit was denied.


Customs Comptroller General, Adewale Adeniyi, noted that since the verification exercise commenced, a significant number of private jets have left Nigeria, while only a few owners have come forward for verification. Adeniyi emphasized the necessity of the exercise to ensure that private jets operating in Nigeria comply with legal import duty obligations.


Customs data shows that many private jets operate in Nigeria without paying the required customs duties. International aviation regulations stipulate that private jets flying within a country for more than a temporary period must pay import duties.


The current verification exercise seeks to confirm the legality of private jet operations and collect outstanding duties. Private aircraft owners are required to present specific documents for verification, including the aircraft Certificate of Registration and various compliance certificates from the NCAA.


This crackdown follows previous government efforts to recover billions in unpaid import duties from private jet operators. Many have exploited regulatory loopholes to avoid paying these duties, opting for Temporary Import Permits (TIP) instead. However, the new Customs leadership is determined to enforce duty payments, potentially recovering close to N100 billion in unpaid import duties, considering the high exchange rate and possible 25 percent penalty fees.


In 2021, 17 private jet owners challenged the Federal Government's actions in court, following the NCS's move to ground 91 jets over unpaid import duties totaling over N30 billion. The NCS's 60-day review of import duties since 2006 resulted in the clearance of 57 commercial charter jets, while 29 private jets were found liable for import duties. Another 62 jets whose owners did not appear for verification were also deemed liable.

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