Campaigns: Unlicensed Private Jet Charter Operations May Hurt Federal Govt Revenue

Nigeria may face fresh revenue losses and deeper regulatory strain as rising political activity ahead of the 2027 general elections increases demand for private jet travel, creating fresh opportunities for unlicensed charter operations.

The concern comes as the Federal Government is still counting losses estimated at N120 billion over the past decade from illegal private jet charter activities, according to findings by the Ministerial Task Force on Illegal Private Charter Operations.

Aviation stakeholders warned that the expected surge in campaign travel by politicians, party leaders, government officials and business interests could widen the gap between demand for on-demand air transport and the number of aircraft legally licensed for commercial charter services.

They fear that operators holding Permits for Non-Commercial Flight (PNCF), meant strictly for private use, may exploit the increased demand to conduct revenue-generating flights without the approvals, taxes, insurance and operational safeguards required of licensed charter operators.

The economic consequences extend beyond lost government revenue to include unpaid taxes, regulatory charges, customs duties and other statutory payments.

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Licensed charter operators also face unfair competition from aircraft owners who allegedly use permits intended exclusively for private, non-commercial flights to conduct revenue-generating services without meeting the obligations imposed on authorised commercial operators.

With politicians expected to travel extensively across the country for rallies, consultations and other campaign activities, aviation stakeholders warn that the increased demand for private air transport could create fresh opportunities for operators exploiting regulatory loopholes.

The central concern is whether the Nigerian Civil Aviation Authority (NCAA) and other relevant agencies can effectively distinguish legitimate private flights from commercial charters conducted without the necessary approvals, insurance and operational safeguards.

A report by the Ministerial Task Force on Illegal Private Charter Operations identified regulatory gaps, weak enforcement, inadequate inter-agency collaboration and outdated regulations as factors contributing to the problem.

The task force also found that some operators allegedly exploit the Permit for Non-Commercial Flight (PNCF), which is intended for private use, to conduct commercial flights for hire and reward.

Under this arrangement, aircraft owners can allegedly generate revenue from charter services while avoiding some of the certification requirements, taxes and regulatory charges applicable to licensed commercial operators.

The report further identified alleged collaboration between some PNCF holders and operators with valid Air Operator Certificates (AOCs), through which unauthorised charter flights are purportedly conducted under existing commercial operating licences.

Speaking exclusively to LEADERSHIP on this issue, an aviation analyst, Dr James Oduadu, said the anticipated increase in demand for private air transport during the electioneering period could encourage illegal charter activities if regulatory authorities failed to intervene.

Oduadu explained that election campaigns traditionally generate substantial demand for on-demand air transport, particularly to destinations with limited scheduled airline services.

He said the limited number of aircraft operating legally under valid AOCs for charter services could widen the gap between demand and available capacity, creating an incentive for some PNCF holders to enter the illegal charter market.

“From a market and operational perspective, the concern is valid. Electioneering campaigns historically create a sharp surge in demand for on-demand air transport, particularly to destinations that are not well served by scheduled operations.

“With a limited number of aircraft holding valid Air Operator Certificates for charter services, this demand-supply gap can push some Permit for Non-Commercial Flight holders into the grey market of illegal charter operations for hire and reward.

“In my assessment, without deliberate intervention, we are likely to see an increase in such practices during this campaign period,” he said.

According to him, the factors driving the practice include the need for speed, privacy, cash-based transactions and the perception that enforcement is weak, particularly at secondary airports.

However, Oduadu warned that passengers who patronise unauthorised operators could face significant safety, legal and financial risks.

He explained that aircraft engaged in illegal charter operations might not have the commercial insurance, safety oversight, crew training standards and maintenance compliance required under the applicable Nigerian Civil Aviation Regulations.

“This exposes both the operator and the person hiring the aircraft to legal and financial liabilities in the event of an incident,” he said.

Oduadu advised individuals and organisations seeking private air transport during the campaign period to verify the regulatory status of operators before making payments.

“My advice to clients and stakeholders at this time is threefold: conduct enhanced due diligence by verifying the operator’s AOC status before hiring an aircraft; insist on proper charter documentation and insurance; and report suspected illegal operations so that the regulator can take appropriate action,” he said.

Also speaking, the Chief Executive Officer of Centurion Aviation Security Services, Capt. John Ojikutu (rtd), said the growing patronage of private aircraft by politicians, senior government officials and corporate executives was already affecting demand for premium seats on scheduled domestic flights.

According to him, some domestic airlines have complained that seats in their first-class and business-class cabins remain unoccupied as high-profile passengers increasingly patronise private aircraft operators.

He argued that private aircraft owners engaging in commercial services must comply with the same applicable safety and security requirements imposed on authorised operators.

“This is certainly a concern. Domestic airlines have complained that seats in their first-class and business-class cabins are remaining empty because governors, senior government officials and corporate executives are patronising private aircraft operators.

“The NCAA must ensure that these operators meet the applicable Nigerian Civil Aviation Regulations on safety and security before engaging in commercial services. I doubt that many of those operating illegally meet all the necessary requirements,” he said.

Ojikutu described unauthorised charter operations as an intrusion into the market of licensed domestic airlines, arguing that the practice could further weaken their revenue base.

He added that the resulting financial pressure could contribute to airlines’ difficulties in meeting their obligations to government agencies and ground-handling service providers.

Ojikutu also raised concerns about the security implications of foreign-registered private aircraft operating within Nigeria, particularly amid what he described as an increasingly challenging global and domestic security environment.

He called for stricter scrutiny of aircraft registration documents, crew licences, airworthiness records and security clearances, especially where foreign-registered aircraft operate extensively within the country.

“We need to be more careful about the movement of foreign-registered private aircraft in Nigeria, particularly at a time when the global civil aviation environment faces security threats alongside our own domestic challenges,” he said.

Ojikutu questioned whether all foreign-registered aircraft operating within Nigeria had the necessary documentation and clearances for their activities.

He urged the NCAA and relevant security agencies to establish whether such aircraft were operating within the conditions and time limits of their approvals.

He also called for closer scrutiny of aircraft operating under foreign registrations and foreign flight crews, stressing the need for regulators to verify the validity of crew licences and aircraft airworthiness documents.

The aviation security expert further raised questions about the investigation into a foreign-registered aircraft that reportedly diverted to a location different from the airport stated in its flight plan.

He asked whether the outcome of that investigation had been made public and whether the authorities had adequately addressed the regulatory and security issues it raised.

Ojikutu also referred to a private aircraft incident in which a door reportedly separated from the aircraft in flight, questioning whether the aircraft had the required cabin crew and whether appropriate technical checks had been conducted.

He said the relevant authorities should establish the circumstances surrounding such incidents and determine whether the aircraft involved had complied with applicable operational and safety requirements.

A former Nigerian Airways pilot, Capt. Muhammed Gbadamasi, said the exploitation of regulatory loopholes by private jet owners had persisted for decades, partly because successive governments had failed to tackle the problem decisively.

He attributed the situation to political considerations, weak enforcement and the influence of individuals with significant economic and political connections.

“Successive governments have overlooked tax evasion involving private aircraft for political reasons. This is a problem that has persisted for about 50 years.

“Private jet owners exploit PNCF licences because the permits are cheaper than those required for commercial operations. They obtain permits for non-commercial flights but allegedly use the aircraft for commercial purposes, thereby bypassing some of the stricter regulations, taxes and fees applicable to commercial operators,” he said.

Gbadamasi alleged that some operators also evade the mandatory five per cent ticket sales tax while presenting questionable insurance documents to regulatory authorities.

He identified the alleged abuse of Temporary Import Permits (TIPs) as another avenue through which government revenue could be lost.

According to him, some aircraft are brought into Nigeria under temporary import arrangements but remain in the country beyond the intended period without the payment of applicable permanent import duties.

He also alleged that some private jets operating in Nigeria are registered through offshore companies in foreign jurisdictions, making it difficult for authorities to establish their beneficial ownership and determine their tax obligations.

Gbadamasi said some operators allegedly rely on foreign registration to claim foreign charter status during inspections, potentially avoiding applicable Value Added Tax, customs duties and other statutory payments.

He blamed the persistence of the practice on weak regulatory oversight and inadequate information sharing among the NCAA, the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS).

According to him, the failure of agencies to coordinate their records can allow aircraft to overstay temporary import approvals without triggering timely assessments of outstanding liabilities.

He also alleged that some influential aircraft owners use legal challenges to delay enforcement actions and the recovery of outstanding taxes.

However, Gbadamasi acknowledged that the Federal Government had taken steps to address some of the violations.

He said the Nigeria Customs Service had increasingly grounded aircraft whose owners failed to meet statutory import-duty obligations, while courts had issued forfeiture orders involving luxury aircraft linked to customs violations and other infractions.

He added that the government had introduced stricter document-revalidation exercises requiring operators to present valid certificates of registration and flight-operations compliance documents or risk losing their operational approvals.

“The NCAA now has a greater responsibility to work closely with the relevant government agencies to identify defaulting aircraft, enforce compliance and ground any aircraft that fails to meet statutory tax and regulatory requirements,” he said.