FG risks N21bn revenue loss to illegal charter operations

Strong indications have emerged that Federal Government may have lost an estimated N21 billion in statutory revenue from illegal private charter operations between January 2025 and September 2026.

The estimate is based on an earlier projection of N120 billion in losses over a decade, assuming the losses accrued evenly over the period.

The potential revenue loss, which has elicited worries in the air transport sector, comes amid questions over the implementation of recommendations by the Ministerial Taskforce on Illegal Private Charter Operations and Related Matters, inaugurated by the Minister of Aviation and Aerospace Development, Festus Keyamo, on June 27, 2024, in Abuja.

The taskforce, chaired by the Managing Director/Chief Executive Officer of Aero Contractors, Capt Ado Sanusi, with Roland Iyayi as vice chairman, identified regulatory gaps and enforcement weaknesses as factors enabling illegal charter operations in the country in its report submitted to the minister on January 31, 2025.

The taskforce, which estimated that the country had lost N120 billion in statutory revenue from the aviation sector over a 10 years period due to regulatory loopholes, also reported that an illegal charter operator generated more than $1 million from a single aircraft in one month.

In the 110 pages report seen by Vanguard, the taskforce further identified weaknesses in the Air Operator Certificate, AOC, certification process, describing it as lengthy and vulnerable to corruption.

It also raised concerns about the Permit for Non-Commercial Flights, PNCF, system, referencing inadequate Know Your Customer, KYC, procedures that could allow permits intended for non-commercial flights to be misused for commercial operations.

According to the taskforce, the Nigeria Civil Aviation Authority, NCAA, faced oversight challenges involving PNCF holders, particularly operators using foreign-registered aircraft, partly because Nigeria was not participating in the 83-Bis aircraft leasing arrangement under the Convention on International Civil Aviation.

The report further identified the absence of an effective licensing framework for air charter brokers as a regulatory gap that could facilitate illegal operations.

It also raised concerns about airport security, including outdated access-control systems, inadequate aviation security staffing and poor coordination between the Federal Airports Authority of Nigeria, FAAN, and private terminal operators.

The General Aviation Terminal, GAT, in Abuja was singled out as particularly vulnerable to security breaches.

To address the identified gaps, the taskforce recommended reforms to the AOC certification process to improve transparency and efficiency, alongside the introduction of general aviation regulations and stricter oversight of PNCF operations to prevent their misuse for unauthorised commercial activities.

Other recommendations included improved airport surveillance and security, a licensing framework for air charter brokers, the publication of the names of violators to promote accountability, and the temporary closure of the Abuja GAT for a comprehensive overhaul to bring it in line with international standards.

Speaking to Vanguard on the issue, aviation safety and security expert, Grp Capt John Ojikutu, retd, questioned the effectiveness of regulatory oversight of private aircraft operations, particularly foreign-registered aircraft.

He said: “Who are the people behind these aircraft? Who owns these aircraft? Most of them are foreign registered. For instance, have you heard any report about the aircraft that was going to Asaba and landed on the road? Most of these aircraft are owned by the same people telling us that they are investigating because it has come to the public.

“At the end of the day, you won’t hear anything about it. Most of them are all foreign registered aircraft, and are in Abuja. If they don’t know, all these aircraft pose security risks to the country. We are too careless.”