The federal government said, yesterday, that Nigerian owners of foreign registered private jets were taking out of the country annually over $10 million through payment of foreign cockpit crew, charges and taxes overseas.

According to government, this has further assisted to boost capital flight out of the country.

Coordinating General Manager, Corporate Communications of Aviation Agencies, Mr. Yakubu Dati, who disclosed this in Lagos, also revealed that owners of private jets who use them to operate illegal charter services were ripping off the country of well-deserved revenue and destroying legally registered commercial charter operators who abide by the regulations of Nigeria Civil Aviation Authority, NCAA.

He said it was to stop the exploitation of the country and grow the business of registered charter operators that the regulatory agency slammed $3,000 on every operation of private jet owners who use their aircraft to carry out illegal services.

He said operators of foreign registered private jets also abstained from paying import duties, five per cent VAT charges and five per cent passenger service charge, PSC, to the Nigeria Civil Aviation Authority, NCAA, thus denying the country of the needed revenue.

He said the total amount of money that Nigeria loses to this category of operators was in excess of $15 billion annually, excluding charges paid by aircraft used for charter services.

Dati said of the 139 private jets operating in Nigeria, 87 were registered overseas, while 52 were registered locally.

He explained that when aircraft was registered overseas, it was assumed to be visiting Nigeria as it usually registered under a foreign operator, adding that the implication of this was non-payment import duty when coming into Nigeria.

“The aircraft pilots and engineers must be foreigners whose licences are registered in that country the aircraft is registered and this means that no Nigerian is operating any of these 87 aircraft as pilot; no Nigerian engineer can be employed to maintain the aircraft.

“Then every year the owner of the aircraft must pay charges to continue to maintain the aircraft under the foreign operator in which the aircraft was registered,” Dati explained

He lamented that though much of the money used to purchase the aircraft was earned and generated in Nigeria, owner of the jets abstain from paying taxes to the Nigerian government, having registered the jets oversea.

Dati said: “It is also worthy of note that 80 per cent of those aircraft registered overseas are also used for illegal charter operation and when used as charter, they do not pay the five per cent VAT tax and the five per cent passenger service charge, PSC, to NCAA as they did not register as charter aircraft ab initio.”

He estimated that 80 per cent of 87 foreign registered aircraft operating in the country was 69, adding that at the average cost of charter of $7,000 per hour, the jets made $1.449 million daily without paying taxes and PSCs.

“So these aircraft earn $1,449,000 million per day and the five per cent VAT tax and five per cent NCAA charges which they do not pay, if deducted from the above earning would amount to $144, 900 per day.

“In a year this would amount to $51, 584, 400 or N8. 2 billion and this is a fragment of the import duties which is estimated to be in billions of

http://www.vanguardngr.com/2013/09/nigeria-loses-10m-to-foreign-registered-private-jets/

that's fine seeing that private jets have become a way of sneaking money out of the country and contraband in.

At the END, only TIME will determine if they will become crash THINGS or not since most were bought with illegally accumulated public wealth!

This is ridiculous, I think registration and operation aren't differentiated. There's a limitation to how long a "visiting" aircraft are allowed to stay and once expired, they pay FEES. Granted they avert registration and taxes, in return, let their landing charges be 10x the industry amount. If you gonna evade taxes, then go to that country and do business. If you gonna land in Abuja, landing fee is $3,000 and for their ATC charges, make it x20. As for operation, Nigeria needs STRICT OPERATIONAL GUIDELINE (including labor laws), governing the industry. That you're registered in another country doesn't mean you can operate "FOR REVENUE" in that country, Nigeria is a sovereign nation with it's own laws, let the change it or ENFORCE IT.

He estimated that 80 per cent of 87 foreign registered aircraft operating in the country was 69, adding that at the average cost of charter of $7,000 per hour, the jets made $1.449 million daily without paying taxes and PSCs.LAGOS — The federal government said, yesterday, that Nigerian owners of foreign registered private jets were taking out of the country annually over $10 million through payment of foreign cockpit crew, charges and taxes overseas.

How can an aircraft be "VISITING" yet operating "revenue non-scheduled" flights? Doesn't make sense if you ask me, the Aviation industry needs reevaluation because these are lapses. Every operating flight within Nigeria should pay taxes to the Nigerian Government, whether registered in overseas or abroad. If foreign flights like BA pay taxes to the government, yet they don't operate domestic flights, how much private jets operating domestic flights?

With a forecast Aviation boom over the next few years, it's time National Assembly overhauled the industry, and applied stringent non-exploit laws An aircraft visiting more than 90-days should be termed "violating immigrant aircraft" subject to penalty. That's how immigrants are treated abroad. Stay past 90-days, and when caught, you face the music.

As for flight and crews, it's common that they don't pay taxes to their visiting nation, let the govt come up with a way of penalizing visiting aircraft - 50% of your crew should be local. If you think that local hands are not good enough, go back where you came from. That's how they do it, even foreign airlines flying into the U.S. have to obey U.S. laws, they mix up some of their crew with Americans and their ground crew are Americans.

Na today !

What's all this noise about. Why not just take decisive action.

How dat one take concern me.....

Okija_juju: So you mean all these Private Jets that Nigerians are buying does not have Nigerian Plate Number?!








And yet they are harassing poor Nigerians wey dey manage Motor with genuine Plate Number..

you mean make the VIO and nigerian police go dey stay for air dey check and harass those nigerian private jets wey no gat nigerian plate number.

There is illegal arms in this country and i'm sure Boko Haram will be using private jets to import weapons into country.

Tolexander: you mean make the VIO and nigerian police go dey stay for air dey check and harass those nigerian private jets wey no gat nigerian plate number.

i was about asking d same question

Nigerians are the ones killing Nigeria. We don't promote our own. We rather take it abroad and thereby crippling our Economy. Whether visiting or foreign, they should be made to pay tax since they are flying on our airspace.

Amaechi No register him jet for naija.

This is good business.

But how many government officials have private jets? They will all deny it.

Na inside rat dey bring outside rat come.

Nigeria is loosing on many things.

U pple r always loosing,Na una won make d losses...Make we hear

60 percent of the private jet owners are the politicians, since the law won't affect the poor they don't want to implement any law concerning that.

manny4life: This is ridiculous, I think registration and operation aren't differentiated. There's a limitation for how long a "visiting" aircraft is allowed to stay and once the limitation expire, they pay FEES. .

its a tricky one as all they have to do to evade the the time limit of a visiting aircraft is fly it to Ghana and back which is what they've been doing all along.

Don't blame them, doing business in Nigeria isn't exactly a walk in the park.

Yuzedo so ur private jet no get plate lamba? as i dey pass i see as ur pilot de load crayfish inside. abeg no be amebo oh

2goodbobo: Nigerians are the ones killing Nigeria. We don't promote our own. We rather take it abroad and thereby crippling our Economy. Whether visiting or foreign, they should be made to pay tax since they are flying on our airspace.

Blame it on religion....the mother of Nigerian politics and corruption

I never know all these, when i get mine, i will know.

Ajekpako:


its a tricky one as all they have to do to evade the the time limit of a visiting aircraft is fly it to Ghana and back which is what they've been doing all along.

Don't blame them, doing business in Nigeria isn't exactly a walk in the park.

Whether you fly to Ghana or not, if your total allotted time limit is 90days OR 100 landings, fly anywhere you want to fly to, after 90 days has accumulated, you start paying fees. It's very simple. This is how immigrants are treated abroad. Visitors cannot stay more than 3months = 90 days in one year cycle regardless of how many times you visited (depends on the class though). Same rule should apply.

The way they come up with these figures tho

Nonsense. If the FG knows all this....avoiding taxes, involvement in illegal activities, losing millions/billions in capital fligjts...is it their duty to complain and plead?... or seize the aircrafts and arrest the law breakers? ....or is it the owners of these jets are above the law?

www.nairaland.com/attachments/449183_425265_BISHOP_DOING_GODS_WORK_JPG7c28f2dc77cb46308999c3b400db134a_jpg91bc239f13eb57ca48783e1fe42e024d

Bishop David Oyedepo own four private jets

The Nigerian aircraft registry is not attractive. It is the duty of the Nigerian government to make the registry competitive. It's a global economy, you can't force anyone to operate under any registry. There are numerous benefits to registering aircraft in Bermuda, Cayman Islands and Isle of Man etc. The authorities in these countries have gone out of their way to make aircraft ownership and operation stress free. The aviation ministry and the NCAA have no clear policies. The system is too bureaucratic for the highly dynamic world of business aviation.
Bottom line : the problem lies more with the government and it's policies than with the aircraft owners and operators

Horus: www.nairaland.com/attachments/449183_425265_BISHOP_DOING_GODS_WORK_JPG7c28f2dc77cb46308999c3b400db134a_jpg91bc239f13eb57ca48783e1fe42e024d

Bishop David Oyedepo own four private jets

Erm I think the Bishop owns only one aircraft, maximum 2

FlyinNaija: The Nigerian aircraft registry is not attractive. It is the duty of the Nigerian government to make the registry competitive. It's a global economy, you can't force anyone to operate under any registry. There are numerous benefits to registering aircraft in Bermuda, Cayman Islands and Isle of Man etc. The authorities in these countries have gone out of their way to make aircraft ownership and operation stress free. The aviation ministry and the NCAA have no clear policies. The system is too bureaucratic for the highly dynamic world of business aviation.
Bottom line : the problem lies more with the government and it's policies than with the aircraft owners and operators

If I understand what you are saying, there is a loophole in the Nigerian taxe system and jet owners are taking advantage of it?

FlyinNaija:

Erm I think the Bishop owns only one aircraft, maximum 2

Not acording to the following article: http://saharareporters.com/news-page/dominion-air-parking-and-maintenance-fees-force-bishop-oyedepo-commercialize-private-jets

There's money to be made in nigeria! White People are getting rich!