ILLEGAL CHARTERS: FG FACES N21BN ESTIMATED REVENUE LOSS
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By: Fasasi Hammad
Strong indications have emerged that the 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 by a government ministerial taskforce that Nigeria could lose about N120 billion in statutory revenue over a 10-year period if regulatory loopholes enabling illegal charter operations remain unchecked.
The potential revenue loss has raised concerns within the aviation sector, particularly over the implementation of recommendations made by the Ministerial Taskforce on Illegal Private Charter Operations and Related Matters.
The taskforce was inaugurated by the Minister of Aviation and Aerospace Development, Festus Keyamo, on June 27, 2024, in Abuja. It was chaired by the Managing Director/Chief Executive Officer of Aero Contractors, Capt. Ado Sanusi, with Roland Iyayi serving as vice chairman.
In its report submitted to the minister on January 31, 2025, the taskforce identified regulatory gaps and weak enforcement as major factors contributing to the growth of illegal charter operations in Nigeria.
The 110-page report estimated that the country had lost about N120 billion in statutory aviation revenue over a 10-year period due to regulatory loopholes. It also revealed that an illegal charter operator could generate more than $1 million from a single aircraft in one month.
The taskforce identified weaknesses in the Air Operator Certificate (AOC) certification process, describing it as lengthy and vulnerable to corruption.
It also raised concerns over the Permit for Non-Commercial Flights (PNCF) system, particularly inadequate Know Your Customer (KYC) procedures that could allow permits meant for non-commercial flights to be exploited for commercial operations.
According to the report, the Nigeria Civil Aviation Authority (NCAA) also faced difficulties in effectively monitoring PNCF holders, especially operators using foreign-registered aircraft. The taskforce linked part of the challenge to Nigeria’s non-participation in the 83-Bis aircraft leasing arrangement under the Convention on International Civil Aviation.
The report further identified the absence of a proper licensing framework for air charter brokers as another regulatory weakness that could facilitate illegal operations.
Airport security was also flagged, with the taskforce citing outdated access-control systems, inadequate aviation security personnel and weak coordination between the Federal Airports Authority of Nigeria (FAAN) and private terminal operators.
The General Aviation Terminal (GAT) in Abuja was specifically identified as being particularly vulnerable to security breaches.
To tackle the challenges, the taskforce recommended reforms to the AOC certification process to improve transparency and efficiency. It also called for the introduction of general aviation regulations and stricter monitoring of PNCF operations to prevent their misuse for unauthorised commercial activities.
Other recommendations included strengthening airport surveillance and security, establishing a licensing framework for air charter brokers, publishing the names of violators to promote accountability and temporarily shutting the Abuja GAT for a comprehensive overhaul to bring it in line with international standards.
However, aviation safety and security expert, retired Group Captain John Ojikutu, questioned the effectiveness of regulatory oversight of private aircraft operations, particularly those involving foreign-registered aircraft.
Ojikutu raised concerns over the ownership and operation of such aircraft, arguing that inadequate oversight could expose the country to significant security risks.
He also criticised what he described as a lack of transparency in investigations involving private aircraft incidents, warning that Nigeria was being too careless in monitoring the operations of foreign-registered aircraft.
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