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FAMFA Oil, Owned By Billionaire, Folorunsho Alakija, Faces ₦8.85bn Customs Duty Claim Over Aircraft as Federal Investigation Deepens
FAMFA Oil, Owned By Billionaire, Folorunsho Alakija, Faces ₦8.85bn Customs Duty Claim Over Aircraft as Federal Investigation Deepens
FAMFA Oil Limited, the oil company associated with billionaire businesswoman Folorunsho Alakija, is facing a federal customs duty demand of approximately ₦8.85 billion over a private aircraft, according to an investigation published by Secrets Reporters on Tuesday.
The reported customs claim, valued at about $6.7 million based on an exchange rate of ₦1,321.68 to the dollar, forms part of a wider federal verification exercise targeting privately owned aircraft operating within Nigerian airspace.
According to the investigation, FAMFA maintained a fleet of three Bombardier business jets, with their combined value estimated at close to $200 million at current list prices, while allegedly operating the aircraft for more than a decade under temporary importation documentation that was either expired, backdated or unavailable.
The matter has reportedly progressed to the courts, where the circumstances surrounding the aircraft’s importation and customs obligations are expected to be examined.
The investigation followed a nationwide verification exercise initiated by the Comptroller-General of the Nigeria Customs Service to identify privately owned aircraft operating in the country without proper compliance with Nigeria’s import regulations.
An initial verification exercise was conducted during the second half of 2021, while a subsequent exercise in mid-2024 involved cross-checking aircraft ownership records, temporary importation permits and clearance certificates issued by the Nigeria Civil Aviation Authority against aircraft physically operating or stationed in Nigeria.
Under Nigeria’s temporary importation regime, an aircraft may enter the country for a specified period without payment of the full applicable customs duty, provided it is subsequently taken out of the country within the authorised period. Failure to comply with the conditions or operating without a valid permit can result in the aircraft becoming liable for the applicable import duties.
FAMFA Oil has not publicly commented on the reported customs claim, while the allegations remain untested in court.
The development has placed renewed attention on one of Nigeria’s most prominent business families and the remarkable rise of Alakija, whose fortune was built substantially through the country’s oil industry.
Alakija began her professional career as a secretary at the Merchant Bank of Nigeria before travelling to England in the early 1980s to study fashion design. Upon returning to Nigeria, she established the luxury fashion label Supreme Stitches, which attracted prominent clientele, including Maryam Babangida, wife of former military ruler Ibrahim Babangida.
Her transition into the oil industry came in 1993 when her company was awarded an oil prospecting licence covering a vast 617,000-acre offshore block, located roughly 100 kilometres off the Nigerian coast.
At the time, the oil block was considered a high-risk and relatively low-value asset. That assessment changed dramatically following FAMFA’s subsequent partnership with Star Deep Water Petroleum, a subsidiary of Chevron, in 1996.
FAMFA transferred a 40 per cent interest in the block under the joint venture arrangement, and the asset was subsequently designated Oil Mining Lease 127 (OML 127). The Agbami field within the block commenced production in 2008 and went on to become one of the most significant deepwater oil discoveries in Nigerian waters.
The ownership of the asset later became the subject of a prolonged legal battle after the Federal Government sought to acquire an interest in the block, initially pursuing a 40 per cent stake and subsequently an additional 10 per cent.
Alakija challenged the government’s move through the courts, culminating in a landmark 2012 Supreme Court victory that brought the decade-long dispute to an end and preserved the family’s 60 per cent interest in the asset.
FAMFA Oil is jointly owned by Alakija and her husband, Modupe Folarin Alakija. The company stated in 2021 that records at the Corporate Affairs Commission showed each of them holding 5 million ordinary shares, representing 50 per cent ownership apiece. Modupe Alakija serves as chairman, while Folorunso Alakija is the company’s executive vice chairman.
Alakija’s wealth has continued to fluctuate alongside movements in international oil prices and the valuation of Nigerian upstream assets. Forbes has placed her fortune at approximately $1 billion in recent rankings.
Beyond FAMFA Oil, the Alakija family has interests in Rose of Sharon Group and Dayspring Property Development, further expanding the family’s footprint across Nigeria’s business landscape.
The reported ₦8.85 billion customs claim now adds another significant chapter to the long-running story surrounding one of Africa’s most prominent business families, even as the legal process will determine the substance and validity of the allegations.
