How Folorunsho Alakija’s FAMFA Oil kept $200 Million Aircraft Fleet, faces N8.85 billion Customs Demand

FAMFA Oil Limited, the Nigerian oil company closely associated with billionaire businesswoman Folorunso Alakija, is facing a customs demand of N8.85 billion over the importation of one of its private aircraft, this newspaper has gathered.

The disputed amount, equivalent to about $6.7 million at an exchange rate of N1,321.68 to the dollar, relates to one aircraft in a three-jet Bombardier fleet reportedly operated by the company.

The three aircraft have a combined value approaching $200 million based on prevailing list prices and were operated in and out of Nigeria over an extended period despite questions surrounding their import documentation.

The allegations are now the subject of litigation and have yet to be determined by a court.

According to the investigation, the aircraft came under scrutiny during a wider enforcement exercise by the Nigeria Customs Service targeting private jets whose import status had not been properly regularised.

The first phase of the verification exercise was conducted in the latter part of 2021, while a second round followed in 2024. Customs officials reportedly compared ownership details, Temporary Importation Permits and regulatory clearances issued by the Nigeria Civil Aviation Authority with aircraft physically operating or based in Nigeria.

Temporary importation arrangements allow aircraft to enter Nigeria without immediate payment of full import duty for a defined period, provided the aircraft complies with the conditions attached to the permit and is eventually exported or formally regularised.

Authorities can demand the applicable duties where an aircraft remains in the country beyond the permitted period or where the required import documentation was never obtained.

It was during this process that FAMFA Oil’s aircraft reportedly attracted regulatory attention.

The company has not publicly responded to the specific allegations contained in the report.

Fashion Entrepreneur to Oil Billionaire

The customs dispute puts fresh attention on a company that has played a central role in one of Nigeria’s most prominent business success stories.

Alakija began her working life in the banking sector before moving into fashion.

After studying fashion design in the United Kingdom, she returned to Nigeria and established Supreme Stitches, a fashion business that built a wealthy and influential clientele.

Among those associated with the brand was Maryam Babangida, wife of former military president Ibrahim Babangida. Alakija’s business fortunes changed dramatically after her company secured an oil prospecting licence in 1993 over an offshore acreage measuring hundreds of thousands of acres.

At the time, the block was regarded as difficult and commercially uncertain because of its deepwater location.

FAMFA later entered into an agreement with Star Deep Water Petroleum, a subsidiary of Chevron, transferring a 40 per cent interest in the asset.

The block subsequently became Oil Mining Lease 127, which contains the Agbami field.

Commercial production from Agbami began in 2008, transforming what had once been viewed as a speculative offshore asset into one of Nigeria’s major deepwater petroleum developments.

Long battle with Nigerian Government

FAMFA’s ownership of the oil block later became the subject of a major legal confrontation with the Federal Government. The government sought to acquire a substantial portion of the company’s interest, initially taking 40 per cent and later seeking an additional 10 per cent.

Alakija and FAMFA challenged the action in court. The legal battle lasted for years before the Supreme Court eventually ruled in the company’s favour in 2012.

The decision restored FAMFA’s disputed interest and strengthened Alakija’s position among Africa’s wealthiest business figures. The family retained a 60 per cent interest in the block following the legal victory.

Family Ownership

FAMFA Oil has also publicly clarified its ownership structure.

In 2021, the company said records filed with the Corporate Affairs Commission showed Folorunso Alakija holding five million ordinary shares, representing 50 per cent of the business.

Her husband, Modupe Folarin Alakija, holds the remaining 50 per cent.

He serves as chairman of the company, while Folorunso Alakija is its executive vice chairman.

Her wealth has fluctuated over the years alongside crude oil prices, production levels and valuations of Nigerian upstream petroleum assets.

Recent estimates have placed her fortune at about $1 billion. Beyond FAMFA Oil, the Alakija family also has interests in businesses including the Rose of Sharon Group and Dayspring Property Development.

The latest customs dispute, however, shifts attention from the family’s oil interests to its private aviation assets and the regulatory obligations attached to importing and operating high-value aircraft in Nigeria.

For now, the N8.85 billion assessment remains contested, with the courts expected to determine the validity of the government’s claims and the extent of any liability arising from the aircraft’s importation.