A number of wealthy Nigerians who own private jets have refused to pay more than N30 billion in import duty tax, the Nigeria Customs Service.
The owners, including business moguls and leading commercial banks, have dragged the federal government to court to seek judicial review to ascertain if they are liable by law to pay the import duty imposed on them.
Investors King could recall that the Federal Government had approved the decision of the Nigeria Customs Service (NCS) to ground 91 private jets belonging to some wealthy Nigerians over their alleged refusal to pay import duties running to over N30 billion.
The Nigeria Customs Service claimed that the owners are liable to import duties since the private jets are foreign-registered.
Subsequently, acting upon the presidential approval, the Customs Service directed the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA), to ground the affected private jets with immediate effect.
Meanwhile, owners of the private jets have filed a court case to stop the import duty imposed on them by NCS.
The owners who have approached the Federal High Court in Abuja are seeking the court to determine, among other things, if they were liable to pay import duty.
Investors King learnt that the owners filed their cases using their trustee companies to hide their identities.
Some of these trustee companies most of which are foreign firms include, Aircraft Trust and Financing Corp Trustee, UAML Corp, Bank of Utah Trustee, Masterjet AVIACAO Executive SA, Empire Aviation Group, and Osa Aviation Limited and Cloud Services Limited.
According to the court document, at least 17 applicants have filed cases against the import duty.
While speaking on the development, the President, Association of Private Aircraft Owners, Mr. Alex Nwuba noted that the government needs to show a higher degree of transparency in the process of registering private jets.
He concluded that while the government is aiming to generate revenue from all means possible, the import duty imposed on the private jet owners might be too much.
“If you buy a private jet for $80m, you may need to pay a duty of over $10m; that may be high to some people,” he said.
85.51 Million Nigerian Bank Customers Face Withdrawal Freeze Over NIN, BVN Deadline
As the March 1 deadline looms, an estimated 85.51 million Nigerian bank customers are facing the possibility of frozen accounts due to their failure to link their National Identification Numbers (NINs) and/or Bank Verification Numbers (BVNs) to their accounts.
Recent findings reveal the potential scale of the impending banking crisis.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) indicates that Nigeria had approximately 146 million active individual bank customers as of December 2022.
However, by January 26, 2024, only 60.49 million BVNs were recorded on the NIBSS portal, leaving a significant portion unlinked.
Meanwhile, about 104 million NINs had been issued by December 2023, highlighting the disparity between NIN issuance and BVN linkage.
The Central Bank of Nigeria (CBN) had earlier issued directives to banks, mandating them to restrict transactions on accounts lacking linked NINs and BVNs, with effect from March 1, 2024.
Any accounts found non-compliant risk being designated as ‘Post no Debit,’ rendering them unable to process further transactions.
Responding to the impending crisis, the Director-General of the National Identification Management Commission (NIMC), Abisoye Coker-Odusote, emphasized the need for the revalidation of Front-End Partners (FEPs) to ensure the integrity of the identity database.
She underscored the importance of NIN registration and urged collaboration with various stakeholders to expedite the process.
The Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, reiterated the significance of linking NINs to SIM cards to enhance national security.
Telecom subscribers were urged to comply with the NIN-SIM linkage directive to avoid service disruptions.
Meanwhile, financial service providers like Opay have issued reminders of the impending restrictions, urging customers to comply with the linkage requirements.
Amidst concerns, some customers contemplate transferring funds to compliant accounts to avoid potential financial setbacks.
As the deadline approaches, stakeholders are intensifying efforts to mitigate the impact of the impending banking crisis on millions of Nigerians.
Central Bank of Nigeria Injects Over $300 Million to Stabilize Naira-Dollar Exchange Rate
In a bid to mitigate the continuous depreciation of the naira against the dollar, the Central Bank of Nigeria (CBN) has injected over $300 million into the foreign exchange market.
This move comes amidst concerns over the instability of the naira-dollar exchange rate, which has seen rates soar as high as N1850/$ in recent trading sessions.
The Association of Corporate Treasurers of Nigeria revealed the CBN’s intervention in an advisory memo to its members, highlighting the significant injections made over the past two weeks.
The memo underscores the urgency to address the steep decline in the value of the naira, which has posed challenges to businesses and individuals alike.
The CBN’s proactive measures signal a concerted effort to stabilize the forex market and restore confidence in the domestic currency.
The injection of funds aims to provide liquidity and alleviate pressure on the naira, which has experienced rapid depreciation in recent weeks.
Market analysts anticipate that the CBN’s intervention will help mitigate the volatility of the naira-dollar exchange rate, providing relief to businesses and consumers grappling with the economic uncertainties.
The move reflects the CBN’s commitment to maintaining stability in the forex market and fostering economic growth amidst challenging times.
FBN Holdings Surpasses GTCO, Zenith Bank to Become Nigeria’s Most Valuable Bank
FBN Holdings has emerged as Nigeria’s most valuable bank, surpassing Guaranty Trust Holding Company (GTCO) and Zenith Bank in terms of market capitalization.
At the close of trading on Monday, FBN Holdings achieved a market capitalization of N1.22 trillion, solidifying its position at the forefront of the banking sector.
The bank’s market cap is now higher than GTCO’s N1.16 trillion and Zenith Bank’s N1.11 trillion.
The surge in FBN Holdings’ market capitalization represents a 56.68% increase since Femi Otedola assumed the role of chairman on January 31st.
Otedola’s stewardship has been instrumental in driving FBN Holdings’ exponential growth.
Since he was appointed a non-executive director in August 2023 and subsequent ratification by shareholders, his leadership has been characterized by strategic decision-making and investor confidence.
Holdings’ shares have risen from N21.70 to N34 under his chairmanship, representing a significant boost for investors and shareholders.
The market’s positive response to Otedola’s leadership underscores the importance of effective governance and visionary leadership in driving financial performance and investor value.
Minority shareholders have expressed optimism about Otedola’s impact on dividend payments and capital appreciation, highlighting his track record of prioritizing shareholder interests in his previous roles.
FBN Holdings’ ascent to the top spot signals a new era of growth and stability for the bank, setting the stage for continued success in Nigeria’s dynamic financial landscape.
As the banking sector navigates evolving market conditions, FBN Holdings’ position at the pinnacle reflects its resilience and adaptability in driving sustainable value for stakeholders.
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