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Only 37.4% of private jets in Nigeria registered locally – FAAN

By on September 21, 2013

Coordinating General Manager, Aviation Parastatals, Yakubu Dati, on Thursday lamented the situation where only 52 or 37.4 per cent of private jets operating in Nigeria are registered locally.

Dati told newsmen that it was to stop the exploitation of the country and also to grow the business of registered charter operators that the Nigerian Civil Aviation Authority (NCAA) slammed $3,000 on every operation of private jet owners, who use their aircraft to carry out illegal services.

Giving a breakdown, he noted that of the 139 private jets operating, 87 are registered overseas, adding that  when aircraft is registered overseas it is assumed that it is visiting Nigeria, as it usually registered under a foreign operator.

Dati, who is also spokesman for the Federal Aviation Authority of Nigeria (FAAN) lamented that Nigeria loses over $15 billion to private jet operators in the country, excluding charges paid by aircraft used for charter services, most of which are illegally deploy when in use in the country.

The image noted also that the average cost of every charter is $7,000 per hour and conservatively every aircraft operates three hours charter per day and when multiplied with 69 aircraft it amounts to 207 hours per day.

In his words, “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 dollars which these aircraft owners did not pay before they were brought into the country”

The General Manager also alleged that these operators do not pay import duties, five per cent Value Added Tax (VAT) charges and also five per cent charges to NCAA.

He added that the total amount of money that Nigeria loses to these operators is estimated to be over $15 billion annually, not including charges paid by aircraft used for charter services, which most of them illegally deploy the aircraft when in use in the country.

 

 

[Daily Independent]