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Nigeria loses N20bn annually to illegal charter operators

By BusinessNews Staff on February 14, 2015

The federal government loses N20 billion annually through privately licensed aircraft, which are used to operate illegal charter service, THISDAY investigations have revealed.

These losses are incurred because illegal operators do not pay 5 per cent ‎charge, which amounts to about N35 billion annually and they have 70 per cent of the charter market.

Averagely, charter operators clock about 40 hours of flight daily and one hour charter service costs about $7000 (N1.4 million)and this and other charges are not paid to government.

Five per cent of the above amount is N70,000. which the operator ought to pay to NCAA, but aircraft that are registered as privately owned but used to operate charter is exempted from the charges.

Commercial charter operators said illegal service providers have hijacked the business from those who were meant to provide the service and whose licences stipulated a certain standard of maintenance to ensure safe operation.

THISDAY gathered that the federal government has directed that such illegal operations must stop and the licenced charter service providers would now fully take over the business and pay the expected taxes to government.

Already, the Nigerian Airspace Management Agency (NAMA), on Wednesday issued a directive that before any private jet is given start up to take off, the pilot must provide the manifest of the flight with their identity cards to know whether the passengers are clients or owners of the aircraft.

The illegal charter operators largely use foreign registered aircraft with foreign crew so Nigeria does not benefit from their operations in terms of manpower or revenue to government.

Inside sources said no other country in the world allows a situation whereby a foreign registered aircraft would be given licence to operate for six months by NCAA and the aircraft will just stay at the airport to pick passengers and collect their money cash at the tarmac.

Besides, the whole money is remitted 100 per cent overseas without anything accruing to the country.

Other privately owned aircraft just use the money from such legal operation to pay for crew and aircraft maintenance.

It is feared that because those involved in the illegal business are highly placed Nigerians, the Minister of Aviation may have a hard time stopping the illicit business.

“If the people who register for charter operation ate allowed to carry out the service it would improve the nation’s economy because the money which are remitted overseas will be here on Nigeria. Nigerians will be employed both as cockpit crew and other jobs. They will build indigenous capacity which will be to the economic benefit of the country. This kind of thing can only happen in this country, ” a commercial charter operator told THISDAY.

[ThisDay]

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