The FG's plan to go after wealthy tax defaulters is faced with some hurdles in the aviation sector as most private jets in the country cannot be traced to their owners
An investigation revealed that about 200 private jets in Nigeria were registered under shell companies while the identities of the real owners is being left to speculation.
Experts are however worried that the practice, besides aiding tax evasion, poses security risk and violates the guiding Nigerian Civil Aviation Regulations (NCARs).
The Guardian learnt that a total of 409 scheduled and non-scheduled aircraft are currently in the records of regulatory agencies. About half of the aircraft are privately owned.
Except those owned by the presidency (presidential fleet), key government agencies like the police, customs and National Emergency Management Agency (NEMA), state governments like Rivers and multinationals companies, others were registered under non-trading companies.
Another exception is a popular pentecostal church in Ota, Ogun State that has since upgraded to the status of an airline (Dominion Air) with its own Air Operating Certificate (AOC). Another pentecostal church, with its international camp on Lagos-Ibadan Expressway has enlisted its private jet under Dominion Air. The rest are allegedly owned by unknown Nigerians who have registered over 120 overseas and the rest in Nigeria under company names.
A chief pilot formally attached to a wealthy Nigerian noted that it was more convenient to have the aircraft registered in the country of manufacture or overseas because insurance premium is cheaper compared to “high-risk Nigerian environment” coupled with high second-hand value overseas.
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“The other reason that we cannot overlook is the tax, considering that taxes on these aircraft in relation to their worth are equally very huge. Why would the rich not want to bypass the system if it allows it?”
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According to reports, Federal Government agencies currently get about N12 billion yearly from taxes, charges, over-flier, landing and parking of the jets. At full compliance, this should be higher.
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