Aviation

Customs ground bank’s jet over unpaid import duty

Published

2 years ago

July 1, 2024

Customs ground bank’s jet over unpaid import duty

The Nigeria Customs Service has grounded a United States-registered Gulfstream G650ER jet belonging to a leading Nigerian bank over unpaid import duty.

This, according to a PUNCH report signalled the commencement of government’s clampdown on owners of private jets over unpaid import duty running into billions of naira.

The development came barely two weeks after the NCS began a one-month verification of private jet owners in the country.

The exercise, which began on June 19, 2024, is expected to end on July 19, 2024.

In a public notice by the Customs, the exercise aims to identify private jet operators that have illegally imported aircraft into the country without paying the necessary import duties.

The customs had recovered about N2bn into the government coffers when a similar exercise was carried out in 2019.

At least 80 private jet owners are expected to present their import documents and aircraft certificate of registration to the Customs in Abuja during the one-month exercise.

Although the grounding of private jets which fail to pay the necessary import duty is expected to begin after the one-month Customs verification exercise, findings showed that moves by some operators to export their aircraft might have forced the NCS to begin the clampdowns on some private jet operators.

The Nigeria Customs Service had last week said some operators of foreign registered private jets were temporarily flying their aircraft out of the country apparently in a bid to evade the exercise.

However, findings by The PUNCH on Sunday disclosed that a luxury Gulfstream G650ER plane belonging to a tier-1 bank had been grounded at Lagos airport over unpaid import duties reportedly estimated at N1.9bn.

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It was learnt that the NCS had written the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency asking them to cancel the flight clearance approval given to the private aircraft.

Our correspondent gathered that the agencies had received the letters to distrain the US-registered Gulfstream G650ER with registration number N331AB and manufacturer’s serial number 6487.

The bank is reportedly owing about N1.9bn in unpaid import duties to the government on two formerly owned private jets (Gulfstream G450 and Gulfstream G550 aircraft), which according to sources have since been taken out of the country.

It was also understood that the assessment of N1.9bn was based on a verification exercise carried out by the NCS in 2021.

It was learnt that going by the current exchange rate, the N1.9bn might be raised to about N6bn. Aircraft import duties are computed based on prevailing exchange rate.

NCAA and NAMA officials said they had received the cancellation of the previously granted flight clearance approval for the Gulfstream G650ER aircraft.

According to the letter, the luxury aircraft which cost over $65m, was found to have contravened the Federal Government’s import duty regulations and as such denied the necessary Export Permit by the Customs Service Area Command at the Murtala Muhammed Airport, Lagos.

A copy of the letter written to the NCAA and NAMA, which was sighted by one of our correspondents, was titled “Re: cancellation of flight clearance approval for Gulfstream G650ER with registration N331AB and manufacturer’s serial number 6487.”

The letter read in part, “The above subject matter refers. The Nigeria Customs in its drive for enhanced revenue collection decided to do a verification exercise on private airlines operating in Nigeria.

“The verification aims to identify privately owned aircraft that were inappropriately imported into the country. This will enable the Service to perfect these Imports and collect revenue accruable to the Federal Government.

“The above-cited aircraft has been found to have contravened the Federal Government’s import duty regulations and as such denied Export Permit by the Customs Service (MMIA Command).

“In furtherance to the above, we are soliciting your kind co-operation and assistance to deny flight clearance approval”

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The Comptroller General, NCS, Adewale Adeniyi, had two weeks ago said a good number of private jets were leaving the country as the verification began.

Adeniyi, who disclosed this while speaking in an interview with Arise Television, stated that since the exercise started, only a few owners have shown up.

“Very few of them (private jet operators) have showed up for verification and we gather intelligence that a good number of them are leaving Nigeria since the announcement was given because they would not want to be verified,” he said.

The CGC explained that the service introduced the private jet verification exercise because more private jets were operating outside the ambits of the law.

“We have seen so many of these aircraft flying and our record tends to show that only a few of them have shown up to pay duty and this is why we are bringing this verification up,” he said.

The CGC disclosed that data obtained from the Nigerian Civil Aviation Authority revealed that though many private jets were operating in the country, only a few had paid customs duties.

Adeniyi explained that when the exercise started sometime in 2019, the service realised N2bn.

“Recall this was not the first time we did it. We did something close to this in 2019 and the exercise fetched us as much as N2bn within the short time that we did it.

“We discovered that there are more private jets that are operating in Nigeria but have not been brought under the ambit of the law. So the data that we got from the NCAA shows that only very few of them paid customs duty to operate in Nigeria,” he stated.

According to the customs boss, the international aviation regulations show that private jets flying in the country are obliged to pay duty.

“If they are here for a brief period in the Nigerian airspace and return, they are not obliged to pay any duty; that is, if they are here on a temporary importation visit. But once they are here and are used within Nigeria, they are liable to pay duty,”

The CGC reiterated that the verification exercise was meant to confirm “aircraft operating within the ambit of the law and those that are operating outside the law.”

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According to a Customs notice, private aircraft owners are expected to bring some documents for the verification exercise, namely aircraft Certificate of Registration, Nigerian Civil Aviation Authority’s Flight Operation Compliance Certificate, NCAA’s Maintenance Compliance Certificate, NCAA’s Permit for Non-Commercial Flights, and Temporary Import Permit (if applicable).

The latest clampdowns on operators of improperly imported private jets came more than one year after the Federal Government suspended the action.

In the past three years, the government had planned to recover import duty running into billions of naira from some private jet operators who had used certain technical loopholes to evade the payment of import duty.

A few private jet owners paid the mandatory import duty after the Hameed Ali-led NCS took some significant steps to recover the revenue. However, several owners and operators of private jets in the country have yet to pay the statutory duty.

Many private aircraft operators in the country have allegedly explored technical loopholes in the regulation to fraudulently obtain a Temporary Import Permit from the Nigeria Customs Service instead of paying the statutory import duty on their imported aircraft.

The TIP, which is valid for an initial period of 12 months, can be extended by six months twice, according to the regulations.

However, several operators of private jets in the country have continued to extend the TIP indefinitely, a development that prompted the Customs to effect past clampdowns.

According to new findings, no fewer than 80 private jet operators are expected to present their aircraft import documents for verification during the one-month exercise.

The TIP has been described by some stakeholders as a fraudulent means of evading the mandatory import duty. Importers of private jets, especially foreign registered private jets, are expected to pay five per cent of the value of the private jet as import duty.

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However, due to the high cost of private jets, some owners often prefer not to pay the import, according to Customs officials.

Instead, the operators prefer to obtain a TIP under the guise that the aircraft is coming into the country for a temporary period, quoting the International Civil Aviation Organisation Convention Article 24 which focuses on Customs waiver for commercial aircraft operating in a country temporarily.

But the new leadership of Customs appears poised to get all operators to pay the import duty.

Unconfirmed sources said the government might get close to N100bn in unpaid import duty on imported private aircraft due to the high exchange rate.

This analysis is however dependent on whether the Customs chooses to implement the 25 per cent penalty fee such aircraft owners are meant to pay for delayed payment. The 25 per cent penalty fee is in addition to the statutory five per cent import duty.

Meanwhile, National Public Relations Officer, NCS, Abdullahi Maiwada, recently confirmed the verification exercise, which began two Wednesdays ago.

Sometime in 2021, about 17 owners of foreign-registered private jets, comprising top business moguls, leading commercial banks, and other rich Nigerians, dragged the Federal Government to court, seeking to stop the grounding of their planes over alleged import duty default.

This came after the Federal Government approved the decision of the Nigeria Customs Service to ground about 91 private jets over their alleged refusal to pay import duties running to over N30bn.

The NCS had in 2021 embarked on a review of import duties paid on private jets brought into the country since 2006.

At the end of the 60-day exercise, 57 private jets, which had licences for commercial charter operations, were cleared and issued Aircraft Operators Certificates 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 liable for import duty payment.

Customs ground bank’s jet over unpaid import duty

PUNCH

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Aviation

Keyamo releases CCTV footage, challenges Peter Obi’s persecution claims

Published

2 weeks ago

July 11, 2026

Trends Admin

Peter Obi has no police escort — Spokesman replies Keyamo over CCTV video

Festus Keyamo and Peter Obi

Keyamo releases CCTV footage, challenges Peter Obi’s persecution claims

Minister of Aviation and Aerospace Development, Festus Keyamo, has asked the presidential candidate of the Nigeria Democratic Congress (NDC) for the 2027 election, Peter Obi, to publicly apologise to airport officials and pay a ₦25,000 parking fine over an incident at the Nnamdi Azikiwe International Airport, Abuja, warning that the Federal Airports Authority of Nigeria (FAAN) could take further action if he fails to comply within one week.

The minister issued the warning after ordering an internal investigation into Obi’s allegation that officials at the Abuja airport harassed him as part of what he described as political persecution by the Federal Government.

In a statement released on Friday night, Keyamo said the investigation relied on footage from the airport’s 24-hour Closed-Circuit Television (CCTV) surveillance system, which he said captured the entire sequence of events that led to the clamping of the vehicle conveying Obi.

According to the minister, the CCTV footage showed that on Saturday, July 4, 2026, Obi arrived at the domestic wing of the airport at about 8:28 p.m. in a vehicle driven by a police officer.

He said Obi and two other occupants immediately entered the terminal building, while the police officer parked the vehicle in the designated drop-off area before leaving it unattended and entering the terminal, contrary to airport regulations.

Keyamo explained that the drop-off zone is designed only for brief passenger drop-offs and that drivers are required to remain inside their vehicles at all times while using the area.

He said leaving any vehicle unattended within the zone constitutes a security risk and violates internationally accepted airport safety procedures.

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According to the minister, the police driver briefly returned to the vehicle at about 8:32 p.m. to retrieve an item before leaving it unattended again.

He said airport security personnel subsequently clamped the tyres of the vehicle after observing that it had remained unattended in the restricted area.

Keyamo stressed that airport officials who carried out the enforcement action did not know the vehicle belonged to Obi because there was no occupant inside when it was clamped.

The minister alleged that after the police officer discovered the vehicle had been immobilised, he contacted Obi, who then spoke directly with the airport manager and requested that the vehicle be released.

According to Keyamo, the vehicle was eventually released without payment of the prescribed ₦25,000 fine for violating airport parking regulations.

He argued that the matter had effectively been resolved until Obi later publicly alleged that he had been deliberately targeted by airport authorities because of his political status.

“As Minister of Aviation, I felt a moral duty to investigate and authenticate the claim made by Mr Peter Obi that the tyres of his car were unjustly clamped, suggesting a persecution agenda against him by the Federal Government,” Keyamo said.

“Luckily enough, the entire Abuja airport is covered by CCTV cameras operating 24 hours a day.”

The minister maintained that the footage contradicted Obi’s account and showed that airport officials merely enforced established security regulations applicable to every airport user, regardless of status or political affiliation.

He further alleged that Obi used his influence to secure the release of the vehicle without paying the required fine and later attempted to portray the enforcement action as political persecution.

Keyamo therefore demanded that Obi publicly apologise to airport workers whom he said were unfairly accused of victimising the former Anambra State governor.

He also asked Obi to voluntarily return to the airport and pay the ₦25,000 parking penalty.

According to the minister, failure to comply within one week would leave him with no option but to direct the Federal Airports Authority of Nigeria (FAAN) to take appropriate administrative action.

“If these demands are not met within one week, I will be giving the necessary directives to the Federal Airports Authority of Nigeria (FAAN) to take the next steps against him,” he stated.

The controversy began after Obi alleged that airport officials clamped the vehicle conveying him while other improperly parked vehicles were left untouched.

The former Anambra State governor argued that the action reflected selective enforcement and formed part of a broader pattern of intimidation directed at opposition figures.

Obi also expressed concern over what he described as the shrinking democratic space in Nigeria and urged public institutions to remain impartial in carrying out their responsibilities.

As of the time of filing this report, Obi had not publicly responded to Keyamo’s latest statement, the CCTV footage released by the Ministry of Aviation or the minister’s demands for an apology and payment of the parking fine.

The incident has generated widespread debate across political and public circles, with supporters of both men offering differing interpretations of the CCTV footage and the circumstances surrounding the enforcement action.

While some observers argue that airport regulations should be applied equally to every Nigerian without regard to political status, others have called for an independent review to determine whether the enforcement process was carried out fairly and consistently.

The development has further intensified political exchanges ahead of the 2027 general election, with analysts saying the dispute reflects the increasingly charged political atmosphere as parties prepare for the next presidential contest.

Attention is now focused on whether Obi will respond to the minister’s ultimatum or whether FAAN will proceed with any formal administrative measures over the incident.

Keyamo releases CCTV footage, challenges Peter Obi’s persecution claims

Aviation

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

Published

4 weeks ago

June 23, 2026

Trends Admin

Murtala Muhammed Airport Terminal Two (MMA2), Lagos

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

The Managing Director and Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has described the resolution of the long-running concession dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, as a major breakthrough that will strengthen investor confidence and reshape public-private partnership (PPP) frameworks in Nigeria’s aviation sector.

Kuku made the remarks at the African Air Transport Convention & Expo 2026 in Lomé, Togo, where she emphasized that successful aviation infrastructure delivery depends not only on funding, but also on strong institutions, regulatory certainty, and consistent policy implementation.

Her comments come after confirmation that the federal government has finally resolved a nearly 20-year concession dispute with Bi-Courtney Aviation Services Limited (BASL), operators of MMA2.

The MMA2 concession dispute, which began in the early 2000s, has been one of the most controversial cases in Nigeria’s aviation sector, shaping discussions around airport privatization and PPP agreements. According to reports, the resolution includes a settlement in which BASL will forgo a N130 billion judgement debt, while retaining responsibility for developing a conference centre opposite the MMA2 terminal. The deal effectively ends years of legal battles, regulatory disagreements, and operational uncertainty surrounding one of Nigeria’s most important airport infrastructure projects.

Kuku described MMA2 as one of the most widely discussed concession projects in Nigeria’s aviation history, noting that it generated prolonged uncertainty for investors and policymakers. She said the conclusion of the dispute sends a strong signal to investors that Nigeria is committed to stabilising its aviation PPP framework and improving contract enforcement.

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“It’s now been resolved. What that means is that it provides better investor confidence for those that are looking to drive PPP projects,” she said. She added that future concession agreements will be structured to ensure fairness between government and private investors, reducing the risk of prolonged disputes.

Industry analysts say the resolution could unlock new private sector participation in airport development projects, including terminal upgrades, cargo expansion, and service modernization. They also note that resolving long-standing disputes like MMA2 helps reduce perceived regulatory risk, which has historically discouraged foreign and domestic investment in Nigeria’s aviation infrastructure.

Beyond the MMA2 settlement, Kuku highlighted broader challenges facing aviation development across Africa, including policy inconsistency, funding gaps, and project delivery risks. She called for closer collaboration between governments, development finance institutions, and private investors to bridge Africa’s aviation infrastructure deficit.

Rather than creating new financing institutions, she recommended strengthening existing banks by establishing specialised aviation desks with technical expertise to support structured investments. Kuku also stressed the importance of early-stage engagement between project developers and financiers to ensure bankable infrastructure projects.

Kuku further revealed that FAAN has developed a multi-phase infrastructure roadmap covering short-, medium-, and long-term priorities across Nigeria’s airport network. In the short term, the focus is on stabilising airport operations and improving passenger experience.

Medium- and long-term plans include terminal upgrades, airside development, cargo infrastructure expansion, and modernization of safety systems. She added that FAAN is also evaluating secondary airports and exploring incentive mechanisms, including guarantee schemes, to encourage airline operations on underserved routes.

With the MMA2 concession dispute now resolved after 20 years, stakeholders say attention will shift to implementation, compliance monitoring, and ensuring that the settlement translates into improved efficiency and investor trust in Nigeria’s aviation sector.

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

Aviation

FG Approves New York, Canada, Dubai Routes for United Nigeria Airlines

Published

1 month ago

June 19, 2026

Trends Admin

Minister of Aviation and Aerospace Development, Festus Keyamo

FG Approves New York, Canada, Dubai Routes for United Nigeria Airlines

The Federal Government has approved several international routes for United Nigeria Airlines, including New York, Canada, and Dubai, in a move aimed at boosting the participation of indigenous carriers in the lucrative global aviation market.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the development on Thursday during the unveiling of two newly acquired Boeing 737-800 Next Generation (NG) aircraft by the airline in Lagos.

According to the minister, the route approvals form part of the government’s broader strategy to ensure Nigerian-owned airlines secure a larger share of international passenger traffic, which has long been dominated by foreign carriers.

“We are giving United about four or five routes now. We are giving them New York. We are giving you Canada. We are giving you Dubai. We are giving you some very fruitful routes now,” Keyamo said.

Keyamo lamented that foreign airlines currently control between 90 and 95 per cent of passenger traffic from Nigeria to major destinations across the world, despite bilateral agreements that grant Nigerian airlines reciprocal rights to operate those routes.

The minister stressed that the government is determined to empower local carriers to compete effectively on international routes and retain a larger share of aviation revenue within the country.

“That market is our market. It doesn’t belong to anybody. Under those bilateral service agreements, we also have reciprocal rights to run those routes. They have to enter that market and eat part of that market,” he said.

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The minister noted that the newly approved routes were granted ahead of the airline’s full capacity to operate them, expressing confidence in the carrier’s ongoing expansion programme.

The announcement came as United Nigeria Airlines unveiled two newly acquired Boeing 737-800NG aircraft, further strengthening its fleet and operational capabilities.

The aircraft, registered as 5N-CFB and 5N-CFC, were named after His Royal Majesty Igwe Nnaemeka Achebe, the Obi of Onitsha, and legendary Nigerian novelist Professor Chinua Achebe.

The airline said the new aircraft will help improve operational efficiency, reduce flight disruptions, and support its plans for regional and international expansion.

Industry observers see the acquisition as a major milestone in the airline’s ambition to become one of West Africa’s leading carriers.

Keyamo also revealed that President Bola Tinubu approved the establishment of a Nigerian aircraft leasing company designed to support domestic airlines in acquiring aircraft through government-backed financing arrangements.

According to him, access to affordable aircraft financing remains one of the biggest challenges facing local airlines, and the initiative is expected to ease fleet acquisition and expansion.

The minister described the route approvals as the outcome of more than two years of policy reforms and stakeholder engagement aimed at revitalising Nigeria’s aviation sector.

“It took about two and a half years for us to begin to reap the fruits of the policy direction that we laid down,” he said.

Beyond route approvals, Keyamo disclosed that the Federal Government is partnering with the Abia State Government to develop an international airport in the state.

He said United Nigeria Airlines is expected to eventually use the facility as one of its operational hubs, while Enugu International Airport is being positioned as a major cargo hub for the South-East region.

The minister also defended the government’s decision to support private airlines instead of reviving a national carrier, citing the collapse of Nigeria Airways as an example of how political interference can undermine airline operations.

Speaking at the event, Boeing representative Moore Ibekwe commended reforms introduced by the Ministry of Aviation and the Nigerian Civil Aviation Authority (NCAA).

He highlighted recent efforts to improve aircraft financing, technical training, safety standards, and regulatory efficiency, describing them as critical to the future growth of Nigeria’s aviation industry.

Ibekwe also noted that Boeing recently launched a technical training programme in Nigeria to support the development of local pilots and engineers.

According to him, Africa is expected to require about 1,200 new aircraft over the next 20 years, creating significant opportunities for Nigerian airlines.

“When I look at these two aircraft behind us today, I see much more than two airplanes. I see enormous potential. I would like to see United Nigeria grow into a 50-aircraft airline within the next decade,” he said.

The airline’s expansion plans align with previous disclosures by its Chairman, Professor Obiora Okonkwo, who said the carrier intends to significantly increase its fleet and expand beyond domestic and regional operations.

United Nigeria Airlines currently operates across major Nigerian cities and serves regional destinations, including Accra, Ghana.

The airline has outlined plans to launch services to destinations such as London, Rome, Jeddah, Dubai, and New York, as it seeks to establish itself as a major player in international aviation.

For many industry stakeholders, the approval of the new routes represents a significant boost for United Nigeria Airlines and a major step toward increasing Nigeria’s presence in the global aviation market.