FG loses N120bn to illegal private jet charters – Report

A report by the Ministerial Task Force on Illegal Private Charter Operations has revealed that the Federal Government has lost over N120bn in revenue in the past decade due to illegal charter operations, regulatory loopholes, and weak enforcement by the Nigerian Civil Aviation Authority.

The report sighted by the PUNCH, commissioned by the Minister of Aviation and Aerospace Development, Festus Keyamo, highlights security breaches, lack of interagency cooperation, and outdated policies stifling the sector’s growth.

According to the report, “Over the past decade, Nigeria lost an estimated N120bn in statutory revenue from the sector due to regulatory loopholes.”

Some of the major names listed in the report include Arik Air Ltd, BUA International Limited, Dominion Air Limited, Executive Jets Services, Max Air Ltd, Rivers State Government, Julius Berger Nig. Ltd, and Nestoil Plc.

In response, the task force outlined several measures to curb illegal operations and restore order in the sector. One key recommendation is the closure and restructuring of the General Aviation Terminal in Abuja to address critical security lapses.

Additionally, the controversial 22-year aircraft age ban, which has been criticized as arbitrary and restrictive to industry growth, is set to be repealed.

The task force has also emphasized the need to strengthen oversight by the Nigerian Civil Aviation Authority to ensure all operators comply fully with aviation regulations.

To enhance accountability, a licensing framework for air charter brokers will be introduced to bring more transparency to the sector.

“By implementing these measures, Nigeria can restore regulatory integrity, enhance safety, and position its aviation sector for long-term sustainability and global competitiveness”, the report read.

However, aviation experts have criticized the effectiveness of the task force, arguing that without strict enforcement, illegal activities will persist.

Aviation security expert and CEO of Centurion Security Limited, John Ojikutu, described the task force as “a waste of time”, pointing fingers at the NCAA for failing to enforce existing laws.

“Most of these charter aircraft are owned by political office holders or people who have something to do with it. It’s an indictment on the NCAA. When you’re talking about enforcement of regulation, it’s the NCAA,” he said.

He questioned the regulation of foreign-registered aircraft, stating, “Most of these charter flights are foreign-registered aircraft. Have you been able to identify them? Who brought them in? What is the regulation on foreign-registered aircraft operating in this country? In my days, they could not operate for more than three months. There were specific airports they had to go to. If you brought them in, they had to stay at the customs airport. That was the law in those days.”

Ojikutu emphasized that illegal flights are being protected by high-profile figures, making enforcement difficult.

“All these foreign-registered aircraft are the ones doing these illegal flights. And they cannot run after them because they are all political officers or political friends. So all these things they are doing now—I want to see how they want to collect ₦150bn, or even ₦100bn, or even ₦50bn from them,” he said.

He challenged the authorities to first identify the illegal aircraft before attempting to recover lost revenue.

“First of all, identify those aircraft that are doing these illegal flights. Who owns them? When they have flight plans to go anywhere, NAMA should not clear them. But these aircraft are still flying all over the place. I am told that there are over 100 of them in this country.”

He also raised concerns about financial oversight, stating that Nigerian-registered airlines must submit their financial records to the NCAA annually, but foreign operators exploit regulatory gaps.

“If an airline is not financially healthy, it is a safety problem,” he warned.

Aviation analyst and member of the Aviation Round Table, Olumide Ohunayo, acknowledged the failures within the system but called for a collaborative approach to solving the crisis.

“The most important thing here is that we have accepted there was failure and lapses in the system and protocol in place. And we have also accepted that before operations, even the process of bringing in those aircraft also had loopholes that were exploited by these illegal operators,” he said.

He emphasized the need for synergy between aviation agencies to monitor illegal flights.

“In doing this, there must be that synergy between the agencies—NAMA, the airport authorities, and the NCAA. It’s not going to be left to the regulator alone,” he said.

He proposed that aviation processes be moved online to improve transparency.

“We’re asking to move almost every operational activity online and introduce IT. That way, people can know which aircraft is taking off to where, and even if you don’t catch them immediately, within a month, the records will expose discrepancies.”

Ohunayo also called on customs authorities to strengthen oversight on aircraft importation and operations.

“Yes, they woke up late to see how the law had been breached. Now that they’ve woken up, good morning to them. I expect them to work together to join the synergy too.”

A source who spoke anonymously highlighted the challenges in proving illegal charter operations, explaining how private aircraft owners disguise commercial operations to evade detection.

“PNCF holders are flying more than licensed operators. Something like ‘hire and reward’ is not clearly defined. So when you say someone has undertaken a commercial work for hire and reward, how do you prove it?”

The source explained that payments for illegal charters are often made in cash and through proxies, making it difficult to track transactions.

“If you pay me $10,000 and you see $7,000 in my account, you can’t say that’s the same money. So a lot of little loopholes exist. The recommendation is to tighten those loopholes that these people are exploiting.”

They also revealed how owners claim their aircraft are for private use while secretly engaging in commercial operations.

“Some of the people came and said, ‘Oh, our directors use the aircraft. And they use it with their friends.’ If you have three directors, and each director has a couple of friends and they fly together or separately, an aircraft that should be doing 10 hours a month can do maybe 100. And they claim it’s for private use.”

Without clear legal definitions, prosecuting illegal operators remains a challenge.

“If you go to court, a smart lawyer will argue that what they say we did is not what we did. And then it’s on you who took them to court to prove it. But you can’t prove it because you don’t have any evidence.”

Recall that in June 2024, the Minister of Aviation and Aerospace Development, Festus Keyamo, established a ministerial task force to address illegal private charter operations. The task force was assigned the responsibility of conducting an inventory of all private non-commercial flight holders and air operator certificate holders.

The decision was driven by widespread complaints from legitimate commercial air charter operators regarding money laundering and illegal drug smuggling, as well as security reports from the country’s intelligence agencies.

The task force was then given a three-month deadline to finalize its report and present it to the ministry.