Nigerian billionaires had, in the last two years,
acquired at least six private jets for a combined fee of about $225million
(N33.75billion).
acquired at least six private jets for a combined fee of about $225million
(N33.75billion).
This
is even as ownership of private jets is becoming increasingly popular in the
country with billionaires appearing to be in a race to out-do each other.
is even as ownership of private jets is becoming increasingly popular in the
country with billionaires appearing to be in a race to out-do each other.
Governor
Peter Obi of Anambra State recently bemoaned the number of privately-owned jets
in Nigeria and called on the Federal Government to probe those who own them.
Obi said the jets could be a source of money laundering and economic sabotage.
Peter Obi of Anambra State recently bemoaned the number of privately-owned jets
in Nigeria and called on the Federal Government to probe those who own them.
Obi said the jets could be a source of money laundering and economic sabotage.
The
billionaires who include politicians, captains of industries and religious
leaders spend more than N10 billion annually to maintain their private
aircraft.
billionaires who include politicians, captains of industries and religious
leaders spend more than N10 billion annually to maintain their private
aircraft.
According
to Sunday Independent investigations, the jets were acquired
between March 2010 and March 2011, according to a top official of the Nigerian
Civil Aviation Authority (NCAA).
to Sunday Independent investigations, the jets were acquired
between March 2010 and March 2011, according to a top official of the Nigerian
Civil Aviation Authority (NCAA).
According
to the source, those who recently acquired private jets are the President of
the Dangote Group, Alhaji Aliko Dangote; Chairman of telecommunications giant,
Globacom, Dr. Mike Adenuga Jnr.; and leader of the Living Faith World Outreach
(Winners Chapel), Dr. David Oyedepo.
to the source, those who recently acquired private jets are the President of
the Dangote Group, Alhaji Aliko Dangote; Chairman of telecommunications giant,
Globacom, Dr. Mike Adenuga Jnr.; and leader of the Living Faith World Outreach
(Winners Chapel), Dr. David Oyedepo.
Others
believed to have private jets include Chairman of grounded Air Nigeria,
Barrister Jimoh Ibrahim; Chairman of Arik Air, Sir Joseph Arumemi-Johnson;
General Overseer of the Redeemed Christian Church of Christ (RCCG) Pastor Enoch
Adeboye; Chief Arthur Eze, Chief Obi Jackson and Chief Ifeanyi Uba of Capital
Oil and Gas Ltd; former President Ibrahim Babaginda, former Lagos State
governor Senator Bola Ahmed Tinubu as well as Rivers and Akwa Ibom states.
believed to have private jets include Chairman of grounded Air Nigeria,
Barrister Jimoh Ibrahim; Chairman of Arik Air, Sir Joseph Arumemi-Johnson;
General Overseer of the Redeemed Christian Church of Christ (RCCG) Pastor Enoch
Adeboye; Chief Arthur Eze, Chief Obi Jackson and Chief Ifeanyi Uba of Capital
Oil and Gas Ltd; former President Ibrahim Babaginda, former Lagos State
governor Senator Bola Ahmed Tinubu as well as Rivers and Akwa Ibom states.
The
oil magnate, Chief Femi Otedola, was said to own a private jet called
Challenger Global 5000.
oil magnate, Chief Femi Otedola, was said to own a private jet called
Challenger Global 5000.
The
source disclosed that Dangote acquired a Canadian made Bombardier Global
Express XRS in April 2010 at an estimated cost of $45million (N6.75billion).
source disclosed that Dangote acquired a Canadian made Bombardier Global
Express XRS in April 2010 at an estimated cost of $45million (N6.75billion).
The
eight-passenger aircraft has registration number N104DA.
eight-passenger aircraft has registration number N104DA.
The
source added that Adenuga also bought a similar plane, a Bombardier Global
Express XRS, around the same time. The plane is marked VP-CAN, according to the
source.
source added that Adenuga also bought a similar plane, a Bombardier Global
Express XRS, around the same time. The plane is marked VP-CAN, according to the
source.
Winners
Chapel equally acquired a new Gulfstream V for $30 million (N4.5billion), the
source said.
Chapel equally acquired a new Gulfstream V for $30 million (N4.5billion), the
source said.
Apart
from the three latest jets, the source said there were at least three others
acquired by other Nigerians, with each of them estimated to cost at least $35
million (N5.25billion).
from the three latest jets, the source said there were at least three others
acquired by other Nigerians, with each of them estimated to cost at least $35
million (N5.25billion).
The
source, however, declined to mention the names of their owners.
source, however, declined to mention the names of their owners.
Using
conservative price figures, the total cost of the six jets is around $225
million (N33.75billion).
conservative price figures, the total cost of the six jets is around $225
million (N33.75billion).
The
NCAA source said that the jets had been registered with the agency.
NCAA source said that the jets had been registered with the agency.
The
Chief Executive Officer of a chartered airline in Lagos confirmed the purchase
of the jets, saying that they belonged to some influential Nigerians and were
parked at the General Aviation Terminal (GAT).
Chief Executive Officer of a chartered airline in Lagos confirmed the purchase
of the jets, saying that they belonged to some influential Nigerians and were
parked at the General Aviation Terminal (GAT).
The
Sales Director for Africa, Bombardier Business Aircraft, Mr. Robert Habjanic,
reportedly said that more Nigerians had placed orders for jets made by the
company.
Sales Director for Africa, Bombardier Business Aircraft, Mr. Robert Habjanic,
reportedly said that more Nigerians had placed orders for jets made by the
company.
Habjanic
said Dangote was one of the first set of Nigerians to take delivery of the
aircraft, adding that a few other businessmen in the country had ordered for
the same Global Express XRS business jet.
said Dangote was one of the first set of Nigerians to take delivery of the
aircraft, adding that a few other businessmen in the country had ordered for
the same Global Express XRS business jet.
According
to sources, Dangote and Adenuga’s Bombardier Global Express are fitted with
latest flight facilities and are one of the most luxurious in the world.
to sources, Dangote and Adenuga’s Bombardier Global Express are fitted with
latest flight facilities and are one of the most luxurious in the world.
The
arrival of Dangote’s private jet, it was learnt, coincided with his 53rd
birthday in 2010.
arrival of Dangote’s private jet, it was learnt, coincided with his 53rd
birthday in 2010.
The
jet, which touched down at the Murtala Muhammed International Airport, Lagos,
from Canada in a 9.3-hour flight, it was learnt, could travel from Lagos to
China non-stop.
jet, which touched down at the Murtala Muhammed International Airport, Lagos,
from Canada in a 9.3-hour flight, it was learnt, could travel from Lagos to
China non-stop.
It
was learnt that the latest acquisitions by Dangote, Adenuga and Oyedepo were
not their first jets. Besides these three, the Chagoury Group, a firm formed by
a prominent Lebanese business family, reportedly has two private jets in its
fleet.
was learnt that the latest acquisitions by Dangote, Adenuga and Oyedepo were
not their first jets. Besides these three, the Chagoury Group, a firm formed by
a prominent Lebanese business family, reportedly has two private jets in its
fleet.
Investigations
also show that private jet owners in Nigeria spend at least $52.3million
(N7.8billion) annually on maintenance and expatriate pilots.
also show that private jet owners in Nigeria spend at least $52.3million
(N7.8billion) annually on maintenance and expatriate pilots.
This
is as a result of the owners’ failure to register the jets locally.
is as a result of the owners’ failure to register the jets locally.
Going
by the International Civil Aviation Organisation’s (ICAO) policy,
Nigeria-registered pilots and engineers cannot fly or maintain
foreign-registered aircraft. According to another source, there are about 70
private jets in the country.
by the International Civil Aviation Organisation’s (ICAO) policy,
Nigeria-registered pilots and engineers cannot fly or maintain
foreign-registered aircraft. According to another source, there are about 70
private jets in the country.
It
was gathered that about 80 per cent of these private jets carry foreign
registration, with most of them registered in South Africa, United States and
some European countries.
was gathered that about 80 per cent of these private jets carry foreign
registration, with most of them registered in South Africa, United States and
some European countries.
This
means that about 56 jets are being flown and maintained by expatriates.
means that about 56 jets are being flown and maintained by expatriates.
According
to industry experts, annual maintenance of a private jet costs an average of
$550,000. This translates into about $30.8million for the estimated 56
foreign-registered aircraft.
to industry experts, annual maintenance of a private jet costs an average of
$550,000. This translates into about $30.8million for the estimated 56
foreign-registered aircraft.
An
expatriate pilot also takes home an average of $8,000 monthly (about N1.40
million), according to experts. This means that Nigeria loses at least
$21.5million annually to expatriate pilots.
expatriate pilot also takes home an average of $8,000 monthly (about N1.40
million), according to experts. This means that Nigeria loses at least
$21.5million annually to expatriate pilots.
These
pilots are flown into the country every three weeks. Their return air tickets,
as well as hotel and feeding costs, while in Nigeria, are borne by the owners
of the private jets.
pilots are flown into the country every three weeks. Their return air tickets,
as well as hotel and feeding costs, while in Nigeria, are borne by the owners
of the private jets.
According
to experts, 70 per cent of the foreign-registered private jets flying in
Nigeria carry South Africa’s registration; hence, a significant number of the
jets are being flown and maintained by South Africans.
to experts, 70 per cent of the foreign-registered private jets flying in
Nigeria carry South Africa’s registration; hence, a significant number of the
jets are being flown and maintained by South Africans.
They,
however, said minor maintenance, called A & B checks in aviation parlance,
was mostly done in Nigeria by expatriates from the countries where the private
jets are registered.
however, said minor maintenance, called A & B checks in aviation parlance,
was mostly done in Nigeria by expatriates from the countries where the private
jets are registered.
Another
expert claimed that most Nigerian pilots and engineers, having noted the trend,
made efforts to obtain foreign licences and validation, especially from South
Africa, but were “tactically refused by the authorities in connivance with
South African aviation firms, which are supposed to recommend them.”
expert claimed that most Nigerian pilots and engineers, having noted the trend,
made efforts to obtain foreign licences and validation, especially from South
Africa, but were “tactically refused by the authorities in connivance with
South African aviation firms, which are supposed to recommend them.”
Although
maintaining a private jet is very expensive, stakeholders said that most of
their owners could afford to operate them.
maintaining a private jet is very expensive, stakeholders said that most of
their owners could afford to operate them.
The
expenses include the cost of hiring at least two pilots for an aircraft,
remuneration of the maintenance engineering team, routine overseas maintenance,
as well as the cost of fuelling; over-flyer, landing and parking charges.
expenses include the cost of hiring at least two pilots for an aircraft,
remuneration of the maintenance engineering team, routine overseas maintenance,
as well as the cost of fuelling; over-flyer, landing and parking charges.
According
to industry experts, it costs an average of $550,000 (N82.5million) annually to
maintain a private jet.
to industry experts, it costs an average of $550,000 (N82.5million) annually to
maintain a private jet.
Sunday Independent investigations
also revealed that three out of the four banks (names withheld), which had
acquired private jets before the 2009 shake-up in the banking sector, have put
them up for commercial use.
also revealed that three out of the four banks (names withheld), which had
acquired private jets before the 2009 shake-up in the banking sector, have put
them up for commercial use.
It
was gathered that the banks opted for commercialisation of the jets to cover
increasing maintenance cost and maximise profit.
was gathered that the banks opted for commercialisation of the jets to cover
increasing maintenance cost and maximise profit.
The
NCAA, which is the industry regulator, has, however, described the action of
the banks as illegal, adding that it had commenced investigation into the act.
NCAA, which is the industry regulator, has, however, described the action of
the banks as illegal, adding that it had commenced investigation into the act.
A
source, who is familiar with the operations of the banks’ aircraft, said: “All
the banks that own private jets do charter secretly without the knowledge of
the NCAA. Some of them do it to maintain their aviation offices and staff.
Also, the high cost of maintaining an aircraft and the cost of keeping it idle
is forcing them to do so.
source, who is familiar with the operations of the banks’ aircraft, said: “All
the banks that own private jets do charter secretly without the knowledge of
the NCAA. Some of them do it to maintain their aviation offices and staff.
Also, the high cost of maintaining an aircraft and the cost of keeping it idle
is forcing them to do so.
“If
you keep an aircraft on the ground for a longer-than-expected period, you will
spend more money on maintenance because aircraft are designed to be flying and
not to be spending a lot of time on the ground.”
you keep an aircraft on the ground for a longer-than-expected period, you will
spend more money on maintenance because aircraft are designed to be flying and
not to be spending a lot of time on the ground.”
A
private jet must be flown for at least 350 hours in a year to justify its
ownership, according to experts.
private jet must be flown for at least 350 hours in a year to justify its
ownership, according to experts.
Aviation
stakeholders had expressed doubts over the justification of continuous
ownership of such jets by the banks, considering the cost of operation and the
frequency of usage.
stakeholders had expressed doubts over the justification of continuous
ownership of such jets by the banks, considering the cost of operation and the
frequency of usage.
Another
top official at the General Aviation Terminal, Murtala Muhammed Airport, Lagos,
where most of the private jets are parked, said that the banks were involved in
the charter business to “maximise profits.”
top official at the General Aviation Terminal, Murtala Muhammed Airport, Lagos,
where most of the private jets are parked, said that the banks were involved in
the charter business to “maximise profits.”
According
to him, like chartered jets companies, some of the banks charge about $6,000
(N900,000) per hour for the use of their private jets.
to him, like chartered jets companies, some of the banks charge about $6,000
(N900,000) per hour for the use of their private jets.
This,
he said, served as an additional source of income for the banks.
he said, served as an additional source of income for the banks.
“All
the banks, which own private jets do charter except for one of them, whose jets
are no longer seen in the country. They maximise profit from this. Sometimes,
they are patronised by senators and ministers. Some of them charge as much as
$6,000 per hour, while some charge below that, depending on the personality of
the person involved in the charter and his relationship with the bank,” the
source, who asked not to be named said.
the banks, which own private jets do charter except for one of them, whose jets
are no longer seen in the country. They maximise profit from this. Sometimes,
they are patronised by senators and ministers. Some of them charge as much as
$6,000 per hour, while some charge below that, depending on the personality of
the person involved in the charter and his relationship with the bank,” the
source, who asked not to be named said.
Hawker
Beechcraft Corporation (HBC), a world-leading manufacturer of business, special
mission and trainer aircraft – designing, marketing and supporting aviation products
and services for businesses, governments and individuals worldwide, recently
described Africa and Nigeria in particular, as one of the most promising
business aviation growth regions in the world.
Beechcraft Corporation (HBC), a world-leading manufacturer of business, special
mission and trainer aircraft – designing, marketing and supporting aviation products
and services for businesses, governments and individuals worldwide, recently
described Africa and Nigeria in particular, as one of the most promising
business aviation growth regions in the world.
The
company said it has experienced strong growth in Nigeria over the past several
years, describing the country as a very attractive market.
company said it has experienced strong growth in Nigeria over the past several
years, describing the country as a very attractive market.
Speaking
to Sunday Independent on how private jets are regulated, the
Media Assistant to the Director General of NCAA, Mr. Sam Adurogboye, said:
“Basically aircraft registration mark indicates the country of registration
where the aircraft is registered. If airplane carries 5N at the tail, it means
it is NCAA registered. That is, 5N is assigned to Nigeria and any aircraft
carrying it is a Nigeria registered civil aircraft.”
to Sunday Independent on how private jets are regulated, the
Media Assistant to the Director General of NCAA, Mr. Sam Adurogboye, said:
“Basically aircraft registration mark indicates the country of registration
where the aircraft is registered. If airplane carries 5N at the tail, it means
it is NCAA registered. That is, 5N is assigned to Nigeria and any aircraft
carrying it is a Nigeria registered civil aircraft.”
He
continued: “If the aircraft is not registered in Nigeria it means it was
registered in another country. The country of registration has oversight
responsibility over the aircraft. For example, British Airways is registered
under United Kingdom Civil Aviation Authority. UKCAA has oversight over BA
aircraft. If we have any issue with BA that has to do with safety implication,
we will put the aircraft down and contact UKCAA immediately. They will tell us
what to do and which may likely be to go ahead and oversight on their behalf.
continued: “If the aircraft is not registered in Nigeria it means it was
registered in another country. The country of registration has oversight
responsibility over the aircraft. For example, British Airways is registered
under United Kingdom Civil Aviation Authority. UKCAA has oversight over BA
aircraft. If we have any issue with BA that has to do with safety implication,
we will put the aircraft down and contact UKCAA immediately. They will tell us
what to do and which may likely be to go ahead and oversight on their behalf.
“If
the UKCAA finds the same thing with an aircraft with 5N in their own place,
they will do the same thing.”
the UKCAA finds the same thing with an aircraft with 5N in their own place,
they will do the same thing.”
On
the allegation that owners of private jets might use them for purposes other
than that for which they are meant, he said, “it is not correct as the owners
do not operate on their own, but through operators with Air Operators
Certificate (AOC).”
the allegation that owners of private jets might use them for purposes other
than that for which they are meant, he said, “it is not correct as the owners
do not operate on their own, but through operators with Air Operators
Certificate (AOC).”
Adurogboye
said Nigerians who have money to buy private jets should do so, adding that it
is a sign that the industry is growing.
said Nigerians who have money to buy private jets should do so, adding that it
is a sign that the industry is growing.
