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Cost of governance: Tinubu orders sale of three presidential jets
Three jets in the Presidential Air Fleet (PAF) are to be sold off, it was learnt at the weekend.
This is part of the cost-saving measures being adopted by the Tinubu Administration, an official revealed.
There are 10 aircraft in the fleet – six jets and four helicopters – which will be cut to seven if the planned action sails through.
During the administration of President Muhammadu Buhari, the plan to sell two planes in the fleet did not materialise.
In October 2016, a Dassault Falcon 7x executive jet and a Beechcraft Hawker 4000 business jet were put up for sale.
The preferred bidders who initially agreed to pay $ 24 million for the two aircraft, later reduced their offer to $ 11 million. This was rejected by the then government.
Thereafter, an arrangement to put some of the aircraft on chatter for willing governors was initiated to make the planes income-generating, thereby reducing the government expenses on maintenance.
The planes in the Presidential Fleet are Boeing Business Jets (BBJ) 737, Gulfstream G550, Gulfstream G500, two Falcon 7X, HS 4000, two Agusta 139, and two Agusta 101.
The BBJ 737 is the Nigerian Air Force One, which is used exclusively by the President.
It is designed to serve as an office and a residential quarter on air to enable the president to function effectively during his trip.
The President also uses one of the helicopters for shuttles during his trips around the country.
Other jets in the fleet are used by top government officials, including the Vice President, governors, the President of the Senate, the Speaker of the House of Representatives, the National Assembly members on special shuttles, the Secretary to the Government of the Federation, ministers on special missions, the Chief of Staff, advisers and even ambassadors of plenipotentiary status.
It could not be ascertained at the weekend if the President BBJ 737 will be sold and replaced.
The BBJ was bought for about $43 million during the administration of President Olusegun Obasanjo.
A Falcon and Embraer jets have been slated to be sold.
Not less than N80 billion has been budgeted for the PAF as maintenance cost, as follows: 2016 (N3.65 billion), 2017 (N4.37 billion), 2018 (N7.26 billion), 2019 (N7.30 billion), 2020 (N6.79 billion), 2021 (N12.55 billion), 2022 (N12.48 billion) and in 2023 about N25.7billion, made up of N13billion in the budget and N12.7billion in the 2023 Supplementary Budget.
The amount released from the budgetary line year on year could not be confirmed.
But President Tinubu is said to be uncomfortable with the rising cost of maintenance, hence his directive to reduce the fleet.
A top source, who spoke in confidence, said: “The President is uncomfortable with the rising cost of maintaining the planes.
“Three planes have been pencilled down for disposal.
“The main reason is cutting down high maintenance costs.
“I think officers in PAF were particularly concerned about the frequency of maintenance and how much it costs the nation.
“The President decided to let off the aircraft that constitute the most burdensome.”
An investigation confirmed that the presidency might have incurred over $5 million as maintenance fees in the past few months.
It was unclear the actual figure of outstanding commitments on the fleet which have not been settled.
Giving reasons for the use of some of the planes by top government officials, a source said: “It takes much time to connect some African countries by air. In such a situation, the Presidential Air Fleet is handy.
“The use of the fleet is domiciled in the Office of the National Security Adviser (ONSA) for effective management.”
Last week, President Tinubu in another cost-saving measure imposed a three-month travel ban on public-funded foreign trips by Federal Government officials.
News
FEC approves ₦47.9tn 2025 budget
By Kayode Sanni-Arewa
The Federal Executive Council, FEC, has approved a proposed national budget of ₦47.9 trillion for the 2025 fiscal year.
Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this on Thursday while briefing State House correspondents after the FEC meeting presided over by President Bola Tinubu.
This was part of the Medium-Term Expenditures Framework, MTEF, for 2025 to 2027 and in line with the Fiscal Responsibility Act of 2007.
“And equally, the fiscal objectives were conservative, because we want to ensure that we study the course much as we believe the projections will be exceeded.
“The budget size that was approved for presentation to the National Assembly in the MTEP is ₦47.9 trillion, with new borrowings of ₦9.2 trillion to finance the budget deficit in 2025,” Bagudu said.
“We need to sustain the market deregulation, commendable market deregulation of petroleum prices and exchange rate, and to compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly, and even to consider the need to amend the relevant sections of the petroleum industry act 2021 to address the significant risk to Federation.
“The Federal Executive Council approved the Medium Term Expenditure Framework and the physical strategy paper, and it will be submitted to the National Assembly.
“This is in addition to bills that are already at the National Assembly, the economic stabilization bills and tax reform bills, which we believe we will have a very, very strong growth in 2025.”
During the meeting, the FEC approved its submission to the National Assembly as required by the 2007 Fiscal Responsibility Act.
The framework projected a gross domestic product (GDP) growth rate of 4.6 percent, an exchange rate of $75 to the naira, and oil production of 2.06 million barrels per day. [Channels TV]
News
Nigeria to get 6,000 power generation by December-Power Minister vows
By Kayode Sanni-Arewa
The Minister of Power, Adebayo Adelabu, has expressed his unwavering optimism that the government will successfully meet its ambitious target of generating 6,000 megawatts of electricity by December 2024, despite the numerous challenges currently affecting the power sector.
The Special Adviser on Strategic Communication and Media Relations, Bolaji Tunji, conveyed this assurance at the fourth edition of the Power Correspondents Association of Nigeria’s annual workshop, themed “Ending the Talk, Moving the Action,” held on Thursday in Abuja.
Nigeria’s power generation currently ranges between 3,500 and 4,000 MW for a population of approximately 200 million people. For instance, on Thursday, the country’s power generation was 3,556.38 MW as of 8 am.
Earlier this year, Adelabu pledged that power generation in Nigeria would reach 6,000 MW by the end of the year, citing improvements in the sector over the past year.
However, the frequent collapse of the nation’s electricity grid and the vandalisation of towers have raised concerns about the stability of the Nigerian Electricity Supply Industry and its ability to achieve the target.
In his goodwill address, the Special Adviser emphasised that the minister’s primary focus remains on achieving the goal of increasing generation and ensuring its efficient distribution to consumers.
Tunji said, “The minister aims to achieve what seems to be an intractable goal—improving generation and ensuring that what is generated reaches the final consumers. There are challenges, but they are surmountable.
“The minister has promised that by December this year, we will reach 6,000 megawatts; yes, we still hope to get there.
“We are confident that we will get there, but we are aware of the current issues with grid collapse. Efforts are being made to resolve these problems. Day and night, teams are being dispatched to address the various issues, and we remain hopeful that we will achieve the 6,000 MW target by December.”
The Director of Renewable Energy, Sunday Owolabi, also reiterated that the government is committed to ensuring 24-hour power supply for Nigerians.
Owolabi, another representative of the minister, stressed that the government’s policies are focused on resolving the challenges facing the country’s electricity transmission, distribution, and generation sub-sectors.
“We are fully committed to transforming the country’s power sector. We are focused on ensuring that our policies are practical and sustainable. We are resolute in ensuring power supply for every Nigerian.
“The government remains fully committed to transforming Nigeria’s power sector through meaningful and actionable reforms.
“We are focused on ensuring that our policies are not only visionary but also practical, impactful, and sustainable. From the ongoing efforts to address infrastructure gaps, enhance power generation, and improve transmission networks, to vital reforms in distribution and the full implementation of the electricity market, we are resolute in our mission to improve power supply for every Nigerian.”
News
Just in: Wike sends FCDA Executive Director on indefinite suspension
By Kayode Sanni-Arewa
Minister of the Federal Capital Territory, Nyesom Wike has suspended the Executive Secretary, Federal Capital Development Authority (FCDA), Engr. Shehu Hadi Ahmad indefinitely.
According to a statement on Thursday, by Lere Olayinka, Senior Special Assistant on Public Communications and New Media to the Minister of Federal Capital Territory (FCT), the suspension of Engr Hadi Ahmad is with immediate effect.
The suspended Executive Secretary has consequently been directed to hand over to the Director of Engineering Services, in the FCDA.
Meanwhile, Nyesom Wike has revealed that President Bola Tinubu ordered the construction of houses for judges in Abuja.
The former Rivers State governor said the project is part of the government’s plan to provide secure housing for judges and strengthen the judiciary’s independence.
Speaking during a media chat on Wednesday, the former Rivers Governor clarified that the housing project is not his personal initiative.
Wike explained that the housing scheme was included in the 2024 budget, approved by the National Assembly, and is not his personal decision.
He added that judges currently live in rented homes, which could make them vulnerable.
He compared this to similar projects he carried out as Rivers State governor and expressed surprise at the criticism, especially from legal professionals.
Wike insisted the project is lawful and should be welcomed as a step in the right direction.
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