Customs ground bank’s jet over unpaid import duty

•Aircraft stopped from flying over alleged N1.9bn unpaid import duties

The Federal Government through the Nigeria Customs Service has grounded a United States-registered Gulfstream G650ER jet belonging to a leading Nigerian bank, signalling the commencement of government clampdowns on private jet owners over unpaid import duty running into several billions of naira.

The development came barely two weeks after the NCS began a one-month verification exercise for 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”

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.

Toyota Nigeria delights customers at maiden Toyota Motor Show (with photos)

… unveils Belta, Rumion

Toyota (Nigeria) Limited has staged an exclusive Motor Show in Lagos, delighting its individual, corporate and government customers as well as prospective customers with remarkable vehicles display, special after-sale packages, test drives and two new vehicle launches and engaging interactions.
The three-day event from June 27-29, was held at The Podium, Lekki, under a setting and ambience akin to international auto shows in Europe and America, depicted a novel way to consolidate their relationship with customers and gain prospects’ confidence.
The vehicle display was held inside the well air-conditioned pavillion, with ample space for display of each of the vehicles.
The roomy space also accommodated the Body and Paint Section, the Spare Parts section and the Service area.

Outside the hall, but within the event centre fully decorated for the Toyota show, was an international standard test-drive arena for customers willing to have a feel of any of the cars.
On the ground was the Managing Director of TNL, Mr. Kunle Ade-Ojo, and other executives of TNL who gave details of each of the vehicles displayed as well as after-sales advisory.

The TNL MD personally took corporate customers, including top government officials, chief executive officers of major companies and influential leaders on a tour of the different sections of the display.
Speaking with journalists earlier, Ade-Ojo said, “This show is for all Toyota customers and other Nigerians interested in buying Toyota vehicles”.
“While we’re still participating in other shows, this exclusive Toyota Motor Show will enable us to concentrate on our customers’ needs, giving them a view of our range of vehicles and letting them know other top-notch services we offer in terms of after-sales service, spare parts availability and body and paint as well as other value-adding services.”
The show, he said, afforded the TNL team an opportunity to “have a one-on-one interaction with our customers without any distraction; free diagnosis on customers’ vehicles and a test drive, all taking place in a quiet and comfortable environment.”
Ade-Ojo who also had a parley with CEOs of corporate and government institutions, expressed satisfaction with the attendance and the outcome of the event.

He said, “It was a wonderful outing. Everybody enjoyed the ambiance and the opportunity to come and have a one-on-one interaction with our team.
“The after-sale area is one sector that has been of major interest to customers who have been coming. The free vehicle diagnostics has been well received.”
One of the highlights of the event was the official unveiling of two new Toyota products, the Belta and Rumion, to the Nigerian market.
Ade-Ojo also spoke on TNL’s plans to introduce three new electric vehicles to the country in the next three years as part of its plans to support the government’s green deal initiative.

“By the end of this year, we’ll be introducing our first hybrid electric vehicle, the Cross. Next year, we’ll introduce the RAV4 hybrid. And late next year or early 2026, we would be bringing in the Land Cruiser Prado hybrid,” he stated.

He said TNL would be lending its big network of workshops to support the Federal Government’s campaign for the use of Compressed Natural Gas-powered vehicles through conversion.
“We are almost concluding arrangements with different partners to use our network of workshops for the vehicles conversion to CNG-powered,” he added.
The TNL MD recalled that Nigeria sold about 10,000 new vehicles last year, with Toyota recording about 1,500 units.
He said that about 15,000 new vehicles were projected to be sold in Nigeria this year, adding that Toyota was on course to double its last year’s performance.

Auto assemblers seek N100bn intervention fund for vehicle acquisition 

Automakers and assemblers have called on the Federal Government to urgently put N100 billion intervention fund into a vehicle finance scheme to enable Nigerians to buy new vehicles and revive the industry.

This, they contend, will also speed up the development of the nation’s economy.

This view was canvassed at the Nigeria Auto Industry Summit held last Thursday in Lagos, where Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said automotive sector holds the key to reviving Nigeria’s economy and positioning the nation as a hub of automotive manufacturing in Africa.

The summit was organised by the Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC) under the theme: ‘Developing Nigeria‘s Economy through the Auto Industry’.

Those who canvassed the view included an ex-Director of NADDC, Mr Luqmam Mamudu, Head Sales, Marketing and Logistics at Honda Automobile Western Africa Ltd, Remi Adams, and General Manager, Marketing & Corporate Communications at Coscharis Group, Abiona Babarinde.

They sought urgent government’s intervention in the auto finance scheme in order to make the industry vibrant.

The Federal Government on a number of occasions, according to Adams, has failed to keep its promise of bringing in commercial banks including a foreign bank to handle a proposed auto finance scheme using funds pulled from levies collected on imported vehicles.

Mamudu lamented that only two per cent of vehicles assembling capacity in Nigeria put at 500,000 vehicles per annum was currently being utilised.

He stressed the need to create the needed demand for such new vehicles and others through a sustainable auto finance scheme.

“Government should create an intervention fund of N100 billion for provision of affordable vehicle acquisition Loans,” he said.

While Mamudu wants the loans directed only to commercial vehicles fleet operators initially to flood Nigeria with shared car services, buses and trucks, others said it should be made open to all intending new vehicle buyers.

“Credible mobility private credit companies with verifiable track records in Nigeria should be identified and invited to participate in this revolving loan scheme.

“The scheme should be supervised by Security and Exchange commission (SEC),” Mamudu, now a automobile industry consultant, stated.

The stakeholders also called for adequate management of used vehicles importation through tariff so as to allow for consistent development of the nation’s automotive industry.

Speaking on the revival of the industry, a board member of Nigeria Automobile Manufacturers Association, Mr Benedeth Ejindu, stressed the need to pass the National Automotive Industry Development Plan (NAIDP) into law to engender investor confidence and breathe new life into the sector.

The Federal Executive Council (FEC) in May 2023 approved the NAIDP.

The system is expected to generate one million jobs and enforce patronage of locally produced vehicles by government and companies working on government contracts.

According to Ejindu, there is also the need to develop and implement an automotive raw material development and component manufacturing master plan.

“There is the need to revive battery, and glass manufacturing as a precursor to revamping local manufacture of welded parts (exhaust system, seat frames), elect Parts (batteries, trafficators, wiring harness).

“Others are plastic and rubber parts such as tyres, tubes, fan blades, seat foam, oil seals, radiator, cables, filters, brake pads/linings, windscreens, side glasses, fibre-glass parts and paints,” he said.

The Nigeria Customs Service, Lagos Chambers of Commerce and Industry (LCCI) and the Nigerian Automotive Manufacturers Association (NAMA) made presentations at the summit.

The stakeholders agreed on the need for collaboration and periodic meetings to harmonise different positions and strategies to avoid working at cross purpose for speedy progress of the industry and national economy.