Investigation Into Unpaid Import Duties On Private Jets In Nigeria

Nigeria’s Federal Government has intensified efforts to crack down on unpaid import duties from at least 60 private jet owners. This move signals a broader restriction on luxury aircraft owners who have evaded import taxes, costing the nation billions of revenue.

What are Import Duties for Private Aircraft?

Import duties for private aircraft are the taxes and fees a country imposes on private aircraft brought in from abroad. These duties typically vary based on the aircraft’s value, its country of origin, and its intended use.

Failing to pay the required import duties on a private jet can have severe consequences. Authorities may impose hefty fines or additional interest on unpaid amounts. In some cases, customs officials may impound or seize the aircraft.

Grounded Private Jets In Nigeria

From June 19, 2024, the Nigeria Customs Service (NCS) launched a one-month verification exercise to identify private jet operators, including billionaires and major commercial banks, who had not paid import duties on their aircraft.  As a part of the crackdown, a Gulfstream G650ER jet belonging to a prominent Nigerian bank was grounded at the Murtala Muhammed International Airport in Lagos. This action followed the revelation that the bank had evaded import duties estimated at N1.9 billion. The Customs Service requested the Nigerian Civil Aviation Management Agency (NAMA) revoke the aircraft’s flight clearance approval. Industry experts are concerned that the Federal Government’s crackdown on aviation tax enforcement could disrupt operations. There are other challenges, including a lack of accountability from private jet owners. Some jet owners reportedly attempted to fly their aircraft out of the country to avoid the NCS verification, according to Custom Officials.

30-day Extension For Owners

On October 14, 2024, the Federal Government announced a 30-day ultimatum for private jet owners to pay their import duties. The NCS Spokesperson, Abdullahi Maiwada said:

“The NCS is committed to ensuring that all illegally imported aircraft meet the legal requirements, thereby promoting transparency and accountability in the aviation sector.”

As the investigation continues, the government may ground more private jets if owners fail to meet their tax obligations. Many view the Nigerian government’s determination to recover lost revenue as a crucial step forward in improving fiscal responsibility and enhancing the aviation industry’s contribution to the country’s gross domestic product (GDP).