Nigeria lost ₦120 billion to Illegal charter operations –Keyamo

Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has revealed how illegal private charter operations plagued the country’s aviation sector for over five decades and cost the federal government an estimated ₦120 billion in lost revenue over the past 10 years.

The minister made the revelation during fourth edition of the Federal Ministry of Information and National Orientation’s Ministerial Press Briefing in Abuja on Thursday. Keyamo described the issue as a “hydra-headed monster,” revealing that 80% of private jet owners in Nigeria have the habit of obtaining Private Non-Commercial Flight (PNCF) licenses but use their aircraft for commercial operations daily.

He said the PNCF license is intended for private use, such as transporting family members or attending social or business events and that it attracts a significantly lower fees compared to licenses for commercial charter operations, which require higher fees and stricter regulations. The minister explained that private jet owners exploit this loophole to avoid paying fees and taxes for commercial purposes. He said for instance, while a commercial charter operator might charge $10,000 for a flight from Lagos to Calabar and pay the required fees, private jet owners with PNCF licenses conduct similar operations without remitting the necessary revenue to the government.

Keymao said that in the past 10 years, Nigeria lost approximately ₦120 billion due to unremitted fees and taxes from illegal charter operations. “They go and obtain the PNCF license, the private one, but all of them are back every day for business. All of them. This is how the federal government has been losing revenue,” he said.

Keyamo said private jets which operate without proper documentation or passenger manifests, makes it difficult to track who or what is on board. He raised concerns that these jets could be used for illegal activities, including smuggling, money laundering, and even terrorism. “You don’t even have the manifest of those inside the aircraft. Sometimes, when there’s a near accident with a private jet, we struggle to find out who was inside. It’s totally unregulated.”

To address the issue, Keyamo established a task force last year headed by the Managing Director of Aero Contractors, Captain Ado Sanusi to investigate illegal charter operations. The task force submitted its report last week, saying they uncovered “mind-boggling” findings. Among the recommendations the task force made is the total shutdown of the private charter wing at airports for a complete overhaul.

“The task force suggested shutting down the private charter wing for total reconfiguration in terms of security and the kind of machines we use to screen bags. We are still looking into how to implement these recommendations without disrupting passenger movement,” Keyamo said.

Daily Sun